Tianqi Lithium's gross profit for the
three
months ended in Dec. 2023 was HK$5,920 Mil. Tianqi Lithium's gross profit for the trailing twelve months (TTM) ended in Dec. 2023 was HK$15,164 Mil.
Gross Margin % is calculated as gross profit divided by its revenue. Tianqi Lithium's gross profit for the
three
months ended in Dec. 2023 was HK$5,920 Mil. Tianqi Lithium's Revenue for the
three
months ended in Dec. 2023 was HK$7,710 Mil. Therefore, Tianqi Lithium's Gross Margin % for the quarter that ended in Dec. 2023 was 76.78%.
Tianqi Lithium had a gross margin of 76.78% for the quarter that ended in Dec. 2023 => Durable competitive advantage
During the past 5 years, the highestGross Margin % of Tianqi Lithium was 85.03%. The lowest was 41.27%. And the median was 61.70%.
Tianqi Lithium Gross Profit Historical Data
The historical data trend for Tianqi Lithium's Gross Profit 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.
Competitive Comparison of Tianqi Lithium's Gross Profit
For the Other Industrial Metals & Mining subindustry, Tianqi Lithium's Gross Profit, along with its competitors' market caps and Gross Profit 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.
Tianqi Lithium's Gross Profit Distribution in the Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Tianqi Lithium's Gross Profit distribution charts can be found below:
* The bar in red indicates where Tianqi Lithium's Gross Profit falls into.
Tianqi Lithium Gross Profit Calculation
Gross Profit is the different between the sale prices and the cost of buying or producing the goods.
Tianqi Lithium's Gross Profit for the fiscal year that ended in Dec. 2023 is calculated as
Gross Profit for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was HK$15,164 Mil.
Gross Profit is the numerator in the calculation of Gross Margin.
* 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.
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.
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
Tianqi Lithium had a gross margin of 76.78% for the quarter that ended in Dec. 2023 => Durable competitive advantage
Tianqi Lithium Gross Profit Related Terms
Thank you for viewing the detailed overview of Tianqi Lithium's Gross Profit provided by GuruFocus.com. Please click on the following links to see related term pages.
Tianqi Lithium is a leading new energy materials company headquartered in China. The company is the largest producer of mined lithium globally in terms of output and is ranked third in terms of revenue generated from lithium, according to Wood Mackenzie. It is also the world's fourth largest and Asia's second largest lithium compound producer, as measured by production output, according to the same source. Tianqi is the only lithium producer in China that has achieved 100% self-sufficiency and has fully vertically integrated lithium mines. It operates in critical stages of the lithium value chain, including: 1) mining of lithium ore and manufacturing of lithium concentrate; and 2) manufacturing of lithium compounds and derivatives.
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