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Bangladesh Building System (DHA:BBS) Gross Margin % : 14.88% (As of Dec. 2023)


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What is Bangladesh Building System Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Bangladesh Building System's Gross Profit for the three months ended in Dec. 2023 was BDT28.0 Mil. Bangladesh Building System's Revenue for the three months ended in Dec. 2023 was BDT188.5 Mil. Therefore, Bangladesh Building System's Gross Margin % for the quarter that ended in Dec. 2023 was 14.88%.

Warning Sign:

Bangladesh Building System Ltd gross margin has been in long-term decline. The average rate of decline per year is -22.7%.


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

DHA:BBS' s Gross Margin % Range Over the Past 10 Years
Min: 4.09   Med: 22.29   Max: 25.62
Current: 16.21


During the past 10 years, the highest Gross Margin % of Bangladesh Building System was 25.62%. The lowest was 4.09%. And the median was 22.29%.

DHA:BBS's Gross Margin % is ranked worse than
56.83% of 1610 companies
in the Construction industry
Industry Median: 19.125 vs DHA:BBS: 16.21

Bangladesh Building System had a gross margin of 14.88% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Bangladesh Building System was -22.70% per year.


Bangladesh Building System Gross Margin % Historical Data

The historical data trend for Bangladesh Building System'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.

Bangladesh Building System Gross Margin % Chart

Bangladesh Building System Annual Data
Trend Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 23.07 9.24 9.36 18.00 4.09

Bangladesh Building System Quarterly Data
Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Jun23 Sep23 Dec23
Gross Margin % Get a 7-Day Free Trial 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 22.88 14.88 - 17.65 14.88

Competitive Comparison of Bangladesh Building System's Gross Margin %

For the Engineering & Construction subindustry, Bangladesh Building System'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.


Bangladesh Building System's Gross Margin % Distribution in the Construction Industry

For the Construction industry and Industrials sector, Bangladesh Building System's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Bangladesh Building System's Gross Margin % falls into.



Bangladesh Building System Gross Margin % Calculation

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

Bangladesh Building System'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 )
=38.4 / 937.756
=(Revenue - Cost of Goods Sold) / Revenue
=(937.756 - 899.356) / 937.756
=4.09 %

Bangladesh Building System'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 )
=28 / 188.456
=(Revenue - Cost of Goods Sold) / Revenue
=(188.456 - 160.414) / 188.456
=14.88 %

* 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.


Bangladesh Building System  (DHA:BBS) 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

Bangladesh Building System had a gross margin of 14.88% 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.


Bangladesh Building System Gross Margin % Related Terms

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Bangladesh Building System (DHA:BBS) Business Description

Traded in Other Exchanges
N/A
Address
Configure Bepari Tower, (3rd Floor), GA-64, Middle Badda, Progoti Swarani, Dhaka, BGD, 1212
Bangladesh Building System Ltd manufactures pre-engineered steel buildings like factories, warehouses, convention centers, workshops, aircraft hangers, commercial showrooms, distribution centers, supermarkets, restaurants, and residential buildings. It generates maximum revenue from Bangladesh.

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