Lenovo Group (HKSE:00992) Gross Margin % : 16.55% (As of Dec. 2023)

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What is Lenovo Group Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Lenovo Group's Gross Profit for the three months ended in Dec. 2023 was HK$20,316 Mil. Lenovo Group's Revenue for the three months ended in Dec. 2023 was HK$122,778 Mil. Therefore, Lenovo Group's Gross Margin % for the quarter that ended in Dec. 2023 was 16.55%.

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

HKSE:00992' s Gross Margin % Range Over the Past 10 Years
Min: 13.08 Med: 14.6 Max: 17.1
Current: 17.1

During the past 13 years, the highest Gross Margin % of Lenovo Group was 17.10%. The lowest was 13.08%. And the median was 14.60%.

HKSE:00992's Gross Margin % is ranked worse than
67.62% of 2437 companies
in the Hardware industry
Industry Median: 24.5 vs HKSE:00992: 17.10

Lenovo Group had a gross margin of 16.55% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Lenovo Group was 4.20% per year.

Lenovo Group Gross Margin % Historical Data

The historical data trend for Lenovo Group'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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Lenovo Group Gross Margin % Chart

Lenovo Group Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Gross Margin %

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14.44

16.48

16.08

16.82

16.95

Lenovo Group 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															17.11	16.96	17.46	17.50	16.55

Competitive Comparison of Lenovo Group's Gross Margin %

For the Computer Hardware subindustry, Lenovo Group'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.

Lenovo Group's Gross Margin % Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Lenovo Group's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Lenovo Group's Gross Margin % falls into.

Lenovo Group Gross Margin % Calculation

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

Lenovo Group's Gross Margin for the fiscal year that ended in Mar. 2023 is calculated as

Gross Margin % (A: Mar. 2023 )	=	Gross Profit (A: Mar. 2023 )	/	Revenue (A: Mar. 2023 )
	=	82419.9	/	486202.273
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(486202.273 - 403782.352)	/	486202.273
	=	16.95 %

Lenovo Group'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 )
	=	20316.3	/	122777.507
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(122777.507 - 102461.164)	/	122777.507
	=	16.55 %

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.

Lenovo Group (HKSE:00992) 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

Lenovo Group had a gross margin of 16.55% 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.

Lenovo Group Gross Margin % Related Terms

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Lenovo Group (HKSE:00992) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Hardware » Lenovo Group Ltd (HKSE:00992) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

LNVGY:USA LNVGF:USA LHL:Germany

Address

979 King's Road, 23rd Floor, Lincoln House, Taikoo Place, Quarry Bay, Hong Kong, HKG

Website

https://www.lenovo.com

Lenovo is a global technology hardware company with a leading market share in personal computers. Its operations are divided into three main business segments: PC and smart devices, mobile, and data center, which we expect to account for 55%, 11%, and 19% of sales in the midterm, respectively. The firm has been actively growing its data center business, which primarily sells network servers to enterprise and hyperscale customers, as well as storage equipment through its mainland China joint venture with NetApp. Server-related revenue contribution has jumped to 16% of overall sales in fiscal 2022, from 6% in 2015.

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