ATA Creativity Global (ATA Creativity Global) Gross Margin % : 62.63% (As of Dec. 2023)

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What is ATA Creativity Global Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. ATA Creativity Global's Gross Profit for the three months ended in Dec. 2023 was $7.33 Mil. ATA Creativity Global's Revenue for the three months ended in Dec. 2023 was $11.71 Mil. Therefore, ATA Creativity Global's Gross Margin % for the quarter that ended in Dec. 2023 was 62.63%.

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

AACG' s Gross Margin % Range Over the Past 10 Years
Min: -216.92 Med: 50.13 Max: 51.83
Current: 51.71

During the past 13 years, the highest Gross Margin % of ATA Creativity Global was 51.83%. The lowest was -216.92%. And the median was 50.13%.

AACG's Gross Margin % is ranked better than
55.42% of 249 companies
in the Education industry
Industry Median: 48.33 vs AACG: 51.71

ATA Creativity Global had a gross margin of 62.63% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for ATA Creativity Global was 0.00% per year.

ATA Creativity Global Gross Margin % Historical Data

The historical data trend for ATA Creativity Global'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.

* Premium members only.

ATA Creativity Global Gross Margin % Chart

ATA Creativity Global Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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36.67

39.25

51.83

49.56

51.74

ATA Creativity Global Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Gross Margin %	Get a 7-Day Free Trial															60.62	44.33	39.48	49.17	62.63

Competitive Comparison of ATA Creativity Global's Gross Margin %

For the Education & Training Services subindustry, ATA Creativity Global'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.

ATA Creativity Global's Gross Margin % Distribution in the Education Industry

For the Education industry and Consumer Defensive sector, ATA Creativity Global's Gross Margin % distribution charts can be found below:

* The bar in red indicates where ATA Creativity Global's Gross Margin % falls into.

ATA Creativity Global Gross Margin % Calculation

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

ATA Creativity Global'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 )
	=	16.1	/	31.038
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(31.038 - 14.98)	/	31.038
	=	51.74 %

ATA Creativity Global's Gross Margin for the quarter that ended in Dec. 2023 is calculated as

Gross Margin % (Q: Dec. 2023 )	=	Gross Profit (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	7.3	/	11.71
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(11.71 - 4.376)	/	11.71
	=	62.63 %

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.

ATA Creativity Global (NAS:AACG) 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

ATA Creativity Global had a gross margin of 62.63% for the quarter that ended in Dec. 2023 => 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.

ATA Creativity Global Gross Margin % Related Terms

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ATA Creativity Global (ATA Creativity Global) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Education » ATA Creativity Global (NAS:AACG) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

3IZ:Germany

Address

No. 39 Dong San Huan Zhong Road, 1st Floor East Gate, Building No. 2, Jian Wai Soho, Chao Yang District, Beijing, CHN, 100022

Website

https://ir.atai.net.cn

ATA Creativity Global is an international educational services company focused on providing quality learning experiences that cultivate and enhance students' creativity. The operating segments are Overseas art study services, Other educational services and K-12 education assessment and other services. Majority of its revenue comes from Overseas art study services.