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Generation Next Fashions (DHA:GENNEXT) Gross Margin %

: 18.25% (As of Dec. 2023) 中文
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Gross Margin % is calculated as gross profit divided by its revenue. Generation Next Fashions's Gross Profit for the three months ended in Dec. 2023 was BDT198 Mil. Generation Next Fashions's Revenue for the three months ended in Dec. 2023 was BDT1,083 Mil. Therefore, Generation Next Fashions's Gross Margin % for the quarter that ended in Dec. 2023 was 18.25%.

Warning Sign:

Generation Next Fashions Ltd gross margin has been in long-term decline. The average rate of decline per year is -8%.


The historical rank and industry rank for Generation Next Fashions's Gross Margin % or its related term are showing as below:

DHA:GENNEXT' s Gross Margin % Range Over the Past 10 Years
Min: 11   Med: 17.74   Max: 27.95
Current: 11


During the past 12 years, the highest Gross Margin % of Generation Next Fashions was 27.95%. The lowest was 11.00%. And the median was 17.74%.

DHA:GENNEXT's Gross Margin % is ranked worse than
80.12% of 1031 companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 25.22 vs DHA:GENNEXT: 11.00

Generation Next Fashions had a gross margin of 18.25% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Generation Next Fashions was -8.00% per year.


Generation Next Fashions Gross Margin % Historical Data

The historical data trend for Generation Next Fashions'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.

Generation Next Fashions Annual Data
Trend Dec14 Dec15 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 15.77 16.40 19.08 14.49 12.65

Generation Next Fashions 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 10.56 10.64 18.43 -16.66 18.25

Competitive Comparison

For the Apparel Manufacturing subindustry, Generation Next Fashions'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.


Generation Next Fashions Gross Margin % Distribution

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Generation Next Fashions's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Generation Next Fashions's Gross Margin % falls into.



Generation Next Fashions Gross Margin % Calculation

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

Generation Next Fashions'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 )
=754.2 / 5961.462
=(Revenue - Cost of Goods Sold) / Revenue
=(5961.462 - 5207.23) / 5961.462
=12.65 %

Generation Next Fashions'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 )
=197.7 / 1083.258
=(Revenue - Cost of Goods Sold) / Revenue
=(1083.258 - 885.544) / 1083.258
=18.25 %

* 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.


Generation Next Fashions  (DHA:GENNEXT) 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

Generation Next Fashions had a gross margin of 18.25% 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.


Generation Next Fashions Gross Margin % Related Terms

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Generation Next Fashions (DHA:GENNEXT) Business Description

Traded in Other Exchanges
N/A
Address
Building No. 348, Road No. 5, DOHS Baridhara, Dhaka, BGD, 1206
Generation Next Fashions Ltd is a textile and apparel company. The company is engaged in the knitting, dying, and manufacturing of textiles and readymade garments. The company offers wearable goods for Men, Women, and Kids. It offers products such as T-shirts, trousers, hoodies, jackets, nightwear, and others.

Generation Next Fashions (DHA:GENNEXT) Headlines

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