BOC Aviation Ltd gross margin has been in long-term decline. The average rate of decline per year is -6.5%.
The historical rank and industry rank for BOC Aviation's Gross Margin % or its related term are showing as below:
HKSE:02588'
s Gross Margin % Range Over the Past 10 Years
Min: 26.39 Med: 39.46 Max: 41.9
Current: 26.4
During the past 12 years, the highestGross Margin % of BOC Aviation was 41.90%. The lowest was 26.39%. And the median was 39.46%.
HKSE:02588's Gross Margin % is ranked worse than 62.99% of 989
companies
in the Business Services industry
Industry Median: 34.65
vs HKSE:02588: 26.40
BOC Aviation had a gross margin of 25.53% for the quarter that ended in Dec. 2023 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for BOC Aviation was -6.50% per year.
BOC Aviation Gross Margin % Historical Data
The historical data trend for BOC Aviation'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.
Competitive Comparison of BOC Aviation's Gross Margin %
For the Rental & Leasing Services subindustry, BOC Aviation'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.
BOC Aviation's Gross Margin % Distribution in the Business Services Industry
For the Business Services industry and Industrials sector, BOC Aviation's Gross Margin % distribution charts can be found below:
* The bar in red indicates where BOC Aviation's Gross Margin % falls into.
* 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.
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
BOC Aviation had a gross margin of 25.53% for the quarter that ended in Dec. 2023 => Competition eroding margins
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.
BOC Aviation Gross Margin % Related Terms
Thank you for viewing the detailed overview of BOC Aviation's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
BOC Aviation is the world's fifth-largest aircraft leasing company by net book value of owned aircraft, with a portfolio of more than 600 commercial passenger and cargo aircraft. The company was founded in 1993 in Singapore as a joint venture between Singapore Airlines and U.S.-based Boullioun Aviation Services. In 2006, the company was acquired by the Bank of China and took on its current name. Listed on the Stock Exchange of Hong Kong in 2016, BOC Aviation remains headquartered in Singapore, but has operations in Dublin, London, New York, and Tianjin. Bank of China remains its largest shareholder with a 70% stake. BOC Aviation has an international management team with its key leaders having more than 30 years of experience in the aircraft and leasing business.
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