ZJK (ZJK Industrial Co) Gross Margin % : 46.57% (As of Jun. 2024)

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What is ZJK Industrial Co Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. ZJK Industrial Co's Gross Profit for the six months ended in Jun. 2024 was $7.56 Mil. ZJK Industrial Co's Revenue for the six months ended in Jun. 2024 was $16.23 Mil. Therefore, ZJK Industrial Co's Gross Margin % for the quarter that ended in Jun. 2024 was 46.57%.

The historical rank and industry rank for ZJK Industrial Co's Gross Margin % or its related term are showing as below:

ZJK' s Gross Margin % Range Over the Past 10 Years
Min: 30.4 Med: 36.35 Max: 42.77
Current: 42.77

During the past 3 years, the highest Gross Margin % of ZJK Industrial Co was 42.77%. The lowest was 30.40%. And the median was 36.35%.

ZJK's Gross Margin % is ranked better than
83.85% of 2935 companies
in the Industrial Products industry
Industry Median: 26.85 vs ZJK: 42.77

ZJK Industrial Co had a gross margin of 46.57% for the quarter that ended in Jun. 2024 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for ZJK Industrial Co was 0.00% per year.

ZJK Industrial Co Gross Margin % Historical Data

The historical data trend for ZJK Industrial Co's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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ZJK Industrial Co Gross Margin % Chart

ZJK Industrial Co Annual Data

Trend

Dec21

Dec22

Dec23

Gross Margin %

30.40

36.35

37.93

ZJK Industrial Co Semi-Annual Data
	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24
Gross Margin %	Get a 7-Day Free Trial			40.69	34.27	34.34	39.64	46.57

Competitive Comparison of ZJK Industrial Co's Gross Margin %

For the Specialty Industrial Machinery subindustry, ZJK Industrial Co's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

ZJK Industrial Co's Gross Margin % Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, ZJK Industrial Co's Gross Margin % distribution charts can be found below:

* The bar in red indicates where ZJK Industrial Co's Gross Margin % falls into.

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ZJK Industrial Co Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

ZJK Industrial Co's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )	=	Gross Profit (A: Dec. 2023 )	/	Revenue (A: Dec. 2023 )
	=	11	/	29.055
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(29.055 - 18.034)	/	29.055
	=	37.93 %

ZJK Industrial Co's Gross Margin for the quarter that ended in Jun. 2024 is calculated as

Gross Margin % (Q: Jun. 2024 )	=	Gross Profit (Q: Jun. 2024 )	/	Revenue (Q: Jun. 2024 )
	=	7.6	/	16.23
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(16.23 - 8.672)	/	16.23
	=	46.57 %

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.

ZJK Industrial Co (NAS:ZJK) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

ZJK Industrial Co had a gross margin of 46.57% for the quarter that ended in Jun. 2024 => Durable competitive advantage

Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.

ZJK Industrial Co Gross Margin % Related Terms

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ZJK Industrial Co Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » ZJK Industrial Co Ltd (NAS:ZJK) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

No.8, Jingqiang Road, 138 Industrial Zone, Xiuxin Community, Kengzi Town, Pingshan New Area, Shenzhen, CHN, 518122

Website

https://www.zjk-industrial.com

ZJK Industrial Co Ltd is a high-tech enterprise specialized in the manufacturing and sale of precision fasteners, structural parts, and other precision metal parts products for new energy vehicles, circuit boards, data centers, liquid cooling systems for high-speed supercomputers widely applied in the artificial intelligence industry, and intelligent electronic equipment, such as mobile phones, smart watches, drones, and 5G communication base stations. Its products include various standard screws, nuts, bolts, turning parts, stamping parts, and Computer Numerical Control (CNC) machining parts. The products are used in new energy vehicles, mobile phones, smart watches, drones, 5G communication base stations, circuit boards, liquid cooling systems, and other electronic equipment.