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China Green Agriculture (China Green Agriculture) Gross Margin %

: 18.70% (As of Dec. 2023)
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Gross Margin % is calculated as gross profit divided by its revenue. China Green Agriculture's Gross Profit for the three months ended in Dec. 2023 was $3.3 Mil. China Green Agriculture's Revenue for the three months ended in Dec. 2023 was $17.8 Mil. Therefore, China Green Agriculture's Gross Margin % for the quarter that ended in Dec. 2023 was 18.70%.

Warning Sign:

China Green Agriculture Inc gross margin has been in long-term decline. The average rate of decline per year is -7.3%.


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

CGA' s Gross Margin % Range Over the Past 10 Years
Min: 17.34   Med: 23.89   Max: 39.47
Current: 18


During the past 13 years, the highest Gross Margin % of China Green Agriculture was 39.47%. The lowest was 17.34%. And the median was 23.89%.

CGA's Gross Margin % is ranked worse than
61.97% of 234 companies
in the Agriculture industry
Industry Median: 23.07 vs CGA: 18.00

China Green Agriculture had a gross margin of 18.70% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for China Green Agriculture was -7.30% per year.


China Green Agriculture Gross Margin % Historical Data

The historical data trend for China Green Agriculture'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.

China Green Agriculture Annual Data
Trend Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
Gross Margin %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 21.96 18.33 17.58 17.34 17.66

China Green Agriculture Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Gross Margin % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 18.40 16.30 18.11 20.76 18.70

Competitive Comparison

For the Agricultural Inputs subindustry, China Green Agriculture'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.


China Green Agriculture Gross Margin % Distribution

For the Agriculture industry and Basic Materials sector, China Green Agriculture's Gross Margin % distribution charts can be found below:

* The bar in red indicates where China Green Agriculture's Gross Margin % falls into.



China Green Agriculture Gross Margin % Calculation

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

China Green Agriculture's Gross Margin for the fiscal year that ended in Jun. 2023 is calculated as

Gross Margin % (A: Jun. 2023 )=Gross Profit (A: Jun. 2023 ) / Revenue (A: Jun. 2023 )
=21.9 / 124.14
=(Revenue - Cost of Goods Sold) / Revenue
=(124.14 - 102.222) / 124.14
=17.66 %

China Green Agriculture'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 )
=3.3 / 17.8
=(Revenue - Cost of Goods Sold) / Revenue
=(17.8 - 14.472) / 17.8
=18.70 %

* 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.


China Green Agriculture  (NYSE:CGA) 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

China Green Agriculture had a gross margin of 18.70% for the quarter that ended in Dec. 2023 => 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.


China Green Agriculture Gross Margin % Related Terms

Thank you for viewing the detailed overview of China Green Agriculture's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


China Green Agriculture (China Green Agriculture) Business Description

Traded in Other Exchanges
Address
South Taibai Road, 3rd Floor, Borough A, Block A. No. 181, Shaanxi Province, Xi’an, CHN, 710065
China Green Agriculture Inc is engaged in the business of fertilizer and agricultural products. It involves the research, development, production, distribution, and sale of humic acid-based compound fertilizer, blended fertilizer, organic compound fertilizer, slow-release fertilizers, concentrated water-soluble fertilizers, and mixed organic-inorganic compound fertilizer and the development, production, and distribution of agricultural products, such as top-grade fruits, vegetables, flowers and colored seedlings in China. The company operates in three segments: Fertilizer products (Jinong), Fertilizer products (Gufeng), and agricultural products (Yuxing). All of its operations are conducted in China.
Executives
Zhibiao Pan officer: Co-Chief Executive Officer NO.39, GROUP NO.1 GANGANG VILLAGE, WULIE COUNTY, DONGTAI F4 224200
Caihua Ran 10 percent owner, other: Director's Mother GROUP NO.4, XIAOHE VILLAGE, TOWNSHIP OF XIAOHE, YOUYANG COUNTY, CHONGQING F4 409800
Xiuzhen Xu 10 percent owner, other: Co-CEO's Mother NO.39, GROUP NO.1 GANGANG VILLAGEN, LIANYI COUNTY, DONGTAI F4 224200
Jian Huang director 676-GROUP 4, XIAOHE VILLAGE, TOWNSHIP OF XIAOHE, YOUYANG COUNTY, CHONGQING F4 409800
Xiaolai Li director NO. 20 BALUN VILLAGE, QIONGSHAN DISTRICT, HAIKOU F4 571100
Zhang Shiyu director 1919 MARKET ST., UNIT 812, PHILADELPHIA PA 19103
Shaanxi Baoyu Science & Technology Investment Co 10 percent owner 86 86 GAOXIN ROAD B-1-6F, XI'AN, SHAANXI PROVINCE F4 710075
Daqing Zhu director 3RD FLOOR, BOROUGH A, BLOCK A. NO. 181,, SOUTH TAIBAI ROAD, XI'AN, SHAANXI F4 710065
Zhuoyu Li officer: President 3RD FLOOR, BOROUGH A, BLOCK A, NO. 181, SOUTH TAIBAI ROAD, XI'AN, SHAANXI PROVINCE F4 710065
Yiru Shi director 1217 S CATALINA AVENUE, REDONDO BEACH CA 90277
Ale Fan director 3RD FLOOR, BOROUGH A, BLOCK A. NO. 181, SOUTH TAIBAI ROAD, XI?AN, SHAANXI PROVINCE F4 PRC 710065
Jianlei Shen director 3RD FLOOR, BOROUGH A, BLOCK A. NO. 181, SOUTH TAIBAI ROAD, XI?AN, SHAANXI PROVINCE F4 PRC 710065
Ken Ren officer: Chief Financial Officer 3RD FL, BOROUGH A, BLOCK A, NO. 181 SOUTH TAIBAI ROAD, XI'AN, SHAANXI PROVINCE F4 710065
Yizhao Zhang director 45 OLD MILLSTONE DRIVE, NIT 6, EAST WINDSOR NJ 08520
Robert B Fields director 215 EAST 68TH STREET, NEW YORK NY 10021

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