ZKH (ZKH Group) Gross Margin % : 17.03% (As of Sep. 2024)

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What is ZKH Group Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. ZKH Group's Gross Profit for the three months ended in Sep. 2024 was $55 Mil. ZKH Group's Revenue for the three months ended in Sep. 2024 was $322 Mil. Therefore, ZKH Group's Gross Margin % for the quarter that ended in Sep. 2024 was 17.03%.

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

ZKH' s Gross Margin % Range Over the Past 10 Years
Min: 13.58 Med: 15.19 Max: 17.24
Current: 17.24

During the past 5 years, the highest Gross Margin % of ZKH Group was 17.24%. The lowest was 13.58%. And the median was 15.19%.

ZKH's Gross Margin % is ranked worse than
82.92% of 1101 companies
in the Retail - Cyclical industry
Industry Median: 36.89 vs ZKH: 17.24

ZKH Group had a gross margin of 17.03% for the quarter that ended in Sep. 2024 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for ZKH Group was 0.00% per year.

ZKH Group Gross Margin % Historical Data

The historical data trend for ZKH Group'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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ZKH Group Gross Margin % Chart

ZKH Group Annual Data

Trend

Dec20

Dec21

Dec22

Dec23

Dec24

Gross Margin %

14.52

13.58

15.85

16.65

17.24

ZKH Group Quarterly Data
	Dec21	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24
Gross Margin %	Get a 7-Day Free Trial					17.07	17.96	17.02	17.03	17.09

Competitive Comparison of ZKH Group's Gross Margin %

For the Internet Retail subindustry, ZKH Group'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.

ZKH Group's Gross Margin % Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, ZKH Group's Gross Margin % distribution charts can be found below:

* The bar in red indicates where ZKH Group's Gross Margin % falls into.

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ZKH Group Gross Margin % Calculation

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

ZKH Group'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 )
	=	203.4	/	1221.419
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(1221.419 - 1018.003)	/	1221.419
	=	16.65 %

ZKH Group's Gross Margin for the quarter that ended in Sep. 2024 is calculated as

Gross Margin % (Q: Sep. 2024 )	=	Gross Profit (Q: Sep. 2024 )	/	Revenue (Q: Sep. 2024 )
	=	54.9	/	322.313
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(322.313 - 267.422)	/	322.313
	=	17.03 %

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.

ZKH Group (NYSE:ZKH) 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

ZKH Group had a gross margin of 17.03% for the quarter that ended in Sep. 2024 => No sustainable 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.

ZKH Group Gross Margin % Related Terms

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ZKH Group Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » ZKH Group Ltd (NYSE:ZKH) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

No. 36 Shenbin Road, 7th Floor, Tower 4, Libao Plaza, Minhang District, Shanghai, CHN, 201106

Website

https://www.zkh.com

ZKH Group Ltd engages in providing MRO procurement service platform in China. It provides one-stop MRO procurement and management services for its customers, and offers digital and fulfillment solutions for participants along the industry value chain. It offers a broad range of MRO product offerings covering all MRO product lines on its platform, including spare parts, chemicals, manufacturing parts, general consumables, and office supplies. All of the Group's revenues are derived from the PRC.