Four Seasons Education (Cayman) (Four Seasons Education (Cayman)) Gross Margin % : 43.17% (As of Aug. 2023)

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What is Four Seasons Education (Cayman) Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Four Seasons Education (Cayman)'s Gross Profit for the six months ended in Aug. 2023 was $3.68 Mil. Four Seasons Education (Cayman)'s Revenue for the six months ended in Aug. 2023 was $8.53 Mil. Therefore, Four Seasons Education (Cayman)'s Gross Margin % for the quarter that ended in Aug. 2023 was 43.17%.

Warning Sign:

Four Seasons Education (Cayman) Inc gross margin has been in long-term decline. The average rate of decline per year is -7.9%.

The historical rank and industry rank for Four Seasons Education (Cayman)'s Gross Margin % or its related term are showing as below:

FEDU' s Gross Margin % Range Over the Past 10 Years
Min: 39.76 Med: 45.06 Max: 63.58
Current: 45.62

During the past 8 years, the highest Gross Margin % of Four Seasons Education (Cayman) was 63.58%. The lowest was 39.76%. And the median was 45.06%.

FEDU's Gross Margin % is ranked worse than
55.42% of 249 companies
in the Education industry
Industry Median: 48.33 vs FEDU: 45.62

Four Seasons Education (Cayman) had a gross margin of 43.17% for the quarter that ended in Aug. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Four Seasons Education (Cayman) was -7.90% per year.

Four Seasons Education (Cayman) Gross Margin % Historical Data

The historical data trend for Four Seasons Education (Cayman)'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.

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Four Seasons Education (Cayman) Gross Margin % Chart

Four Seasons Education (Cayman) Annual Data

Trend

Feb16

Feb17

Feb18

Feb19

Feb20

Feb21

Feb22

Feb23

Gross Margin %

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48.81

48.35

39.76

40.21

41.77

Four Seasons Education (Cayman) Semi-Annual Data
	Feb16	Aug16	Feb17	Aug17	Feb18	Aug18	Feb19	Aug19	Feb20	Aug20	Feb21	Aug21	Feb22	Aug22	Feb23	Aug23
Gross Margin %	Get a 7-Day Free Trial											37.76	46.31	25.74	52.63	43.17

Competitive Comparison of Four Seasons Education (Cayman)'s Gross Margin %

For the Education & Training Services subindustry, Four Seasons Education (Cayman)'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.

Four Seasons Education (Cayman)'s Gross Margin % Distribution in the Education Industry

For the Education industry and Consumer Defensive sector, Four Seasons Education (Cayman)'s Gross Margin % distribution charts can be found below:

* The bar in red indicates where Four Seasons Education (Cayman)'s Gross Margin % falls into.

Four Seasons Education (Cayman) Gross Margin % Calculation

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

Four Seasons Education (Cayman)'s Gross Margin for the fiscal year that ended in Feb. 2023 is calculated as

Gross Margin % (A: Feb. 2023 )	=	Gross Profit (A: Feb. 2023 )	/	Revenue (A: Feb. 2023 )
	=	2.1	/	5.004
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(5.004 - 2.914)	/	5.004
	=	41.77 %

Four Seasons Education (Cayman)'s Gross Margin for the quarter that ended in Aug. 2023 is calculated as

Gross Margin % (Q: Aug. 2023 )	=	Gross Profit (Q: Aug. 2023 )	/	Revenue (Q: Aug. 2023 )
	=	3.7	/	8.53
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(8.53 - 4.848)	/	8.53
	=	43.17 %

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.

Four Seasons Education (Cayman) (NYSE:FEDU) 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

Four Seasons Education (Cayman) had a gross margin of 43.17% for the quarter that ended in Aug. 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.

Four Seasons Education (Cayman) Gross Margin % Related Terms

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Four Seasons Education (Cayman) (Four Seasons Education (Cayman)) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Education » Four Seasons Education (Cayman) Inc (NYSE:FEDU) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

309 Yuyuan Road, Room 1301, Zi'an Building, Jing'an District, Shanghai, CHN, 200040

Website

http://www.sijiedu.com

Four Seasons Education (Cayman) Inc is engaged in the provision of after-school education services for kindergarten, elementary and middle school students. The company is a comprehensive educational enterprise that provides research practice services, educational informatization equipment, high-quality educational resources, and teacher training, as well as a digital publishing business, and continues to expand in educational research and educational informatization.