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LianChuang Electronic Technology Co's gross profit for the three months ended in Sep. 2024 was ¥310 Mil. LianChuang Electronic Technology Co's gross profit for the trailing twelve months (TTM) ended in Sep. 2024 was ¥958 Mil.
Gross Margin % is calculated as gross profit divided by its revenue. LianChuang Electronic Technology Co's gross profit for the three months ended in Sep. 2024 was ¥310 Mil. LianChuang Electronic Technology Co's Revenue for the three months ended in Sep. 2024 was ¥2,808 Mil. Therefore, LianChuang Electronic Technology Co's Gross Margin % for the quarter that ended in Sep. 2024 was 11.03%.
LianChuang Electronic Technology Co had a gross margin of 11.03% for the quarter that ended in Sep. 2024 => No sustainable competitive advantage
During the past 13 years, the highest Gross Margin % of LianChuang Electronic Technology Co was 24.69%. The lowest was 8.29%. And the median was 13.15%.
Warning Sign:
LianChuang Electronic Technology Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -8.6%.
The historical data trend for LianChuang Electronic Technology Co'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.
LianChuang Electronic Technology Co Annual Data | |||||||||||||||||||||
Trend | Dec14 | Dec15 | Dec16 | Dec17 | Dec18 | Dec19 | Dec20 | Dec21 | Dec22 | Dec23 | |||||||||||
Gross Profit | Get a 7-Day Free Trial | 928.18 | 857.60 | 1,016.14 | 1,326.09 | 816.45 |
LianChuang Electronic Technology Co Quarterly Data | ||||||||||||||||||||
Dec19 | Mar20 | Jun20 | Sep20 | Dec20 | Mar21 | Jun21 | Sep21 | Dec21 | Mar22 | Jun22 | Sep22 | Dec22 | Mar23 | Jun23 | Sep23 | Dec23 | Mar24 | Jun24 | Sep24 | |
Gross Profit | Get a 7-Day Free Trial | 221.68 | 220.37 | 176.16 | 251.86 | 309.79 |
For the Electronic Components subindustry, LianChuang Electronic Technology Co'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.
For the Hardware industry and Technology sector, LianChuang Electronic Technology Co's Gross Profit distribution charts can be found below:
* The bar in red indicates where LianChuang Electronic Technology Co's Gross Profit falls into.
Gross Profit is the different between the sale prices and the cost of buying or producing the goods.
LianChuang Electronic Technology Co's Gross Profit for the fiscal year that ended in Dec. 2023 is calculated as
Gross Profit (A: Dec. 2023 ) | = | Revenue | - | Cost of Goods Sold |
= | 9847.738 | - | 9031.288 | |
= | 816 |
LianChuang Electronic Technology Co's Gross Profit for the quarter that ended in Sep. 2024 is calculated as
Gross Profit (Q: Sep. 2024 ) | = | Revenue | - | Cost of Goods Sold |
= | 2807.791 | - | 2498 | |
= | 310 |
Gross Profit for the trailing twelve months (TTM) ended in Sep. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was ¥958 Mil.
Gross Profit is the numerator in the calculation of Gross Margin.
LianChuang Electronic Technology Co'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 ) |
= | (Revenue - Cost of Goods Sold) | / | Revenue | |
= | 310 | / | 2807.791 | |
= | 11.03 % |
* 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.
LianChuang Electronic Technology Co (SZSE:002036) Gross Profit 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
LianChuang Electronic Technology Co had a gross margin of 11.03% for the quarter that ended in Sep. 2024 => No sustainable competitive advantage
Thank you for viewing the detailed overview of LianChuang Electronic Technology Co's Gross Profit provided by GuruFocus.com. Please click on the following links to see related term pages.
Rao Wei | Directors, executives | |
Lu Guo Qing | Secretary Dong | |
Lu Fan Rong | Directors, executives | |
Luo Shun Gen | Directors, executives | |
Ceng Ji Yong | Directors, executives | |
Han Sheng Long | Directors, executives | |
Liu Dan | Supervisors | |
Wang Zong Zhen | Executives | |
Zhang Guo Jun | Directors, executives | |
Wang Meng Wei | Supervisors | |
Chen Ju Fang | Supervisors | |
Zhuang Li Ping | Supervisors | |
Ma Jing Yue | Executives | |
Zhang Ling Hua | Executives | |
Shi Dong Ming | Director |
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