Tomo Holdings (HKSE:06928) Gross Margin % : 3.90% (As of Jun. 2023)

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What is Tomo Holdings Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Tomo Holdings's Gross Profit for the six months ended in Jun. 2023 was HK$1.79 Mil. Tomo Holdings's Revenue for the six months ended in Jun. 2023 was HK$45.97 Mil. Therefore, Tomo Holdings's Gross Margin % for the quarter that ended in Jun. 2023 was 3.90%.

Warning Sign:

Tomo Holdings Ltd gross margin has been in long-term decline. The average rate of decline per year is -31.1%.

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

HKSE:06928' s Gross Margin % Range Over the Past 10 Years
Min: 4.64 Med: 40.02 Max: 42.36
Current: 4.64

During the past 9 years, the highest Gross Margin % of Tomo Holdings was 42.36%. The lowest was 4.64%. And the median was 40.02%.

HKSE:06928's Gross Margin % is ranked worse than
93.77% of 1269 companies
in the Vehicles & Parts industry
Industry Median: 19.36 vs HKSE:06928: 4.64

Tomo Holdings had a gross margin of 3.90% for the quarter that ended in Jun. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Tomo Holdings was -31.10% per year.

Tomo Holdings Gross Margin % Historical Data

The historical data trend for Tomo Holdings'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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Tomo Holdings Gross Margin % Chart

Tomo Holdings Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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39.91

30.06

16.15

5.66

4.63

Tomo Holdings Semi-Annual Data
	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Gross Margin %	Get a 7-Day Free Trial												7.05	9.92	4.14	3.90	9.57

Competitive Comparison of Tomo Holdings's Gross Margin %

For the Auto Parts subindustry, Tomo Holdings'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.

Tomo Holdings's Gross Margin % Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Tomo Holdings's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Tomo Holdings's Gross Margin % falls into.

Tomo Holdings Gross Margin % Calculation

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

Tomo Holdings's Gross Margin for the fiscal year that ended in Dec. 2022 is calculated as

Gross Margin % (A: Dec. 2022 )	=	Gross Profit (A: Dec. 2022 )	/	Revenue (A: Dec. 2022 )
	=	5.3	/	94.107
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(94.107 - 88.78)	/	94.107
	=	5.66 %

Tomo Holdings's Gross Margin for the quarter that ended in Jun. 2023 is calculated as

Gross Margin % (Q: Jun. 2023 )	=	Gross Profit (Q: Jun. 2023 )	/	Revenue (Q: Jun. 2023 )
	=	1.8	/	45.967
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(45.967 - 44.175)	/	45.967
	=	3.90 %

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.

Tomo Holdings (HKSE:06928) 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

Tomo Holdings had a gross margin of 3.90% for the quarter that ended in Jun. 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.

Tomo Holdings Gross Margin % Related Terms

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Tomo Holdings (HKSE:06928) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Tomo Holdings Ltd (HKSE:06928) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Bedok North Street 5, Block 3018, Number 02-08 Eastlink, Singapore, SGP, 486132

Website

https://www.thetomogroup.com

Tomo Holdings Ltd is an investment holding company engaged in manufacturing auto parts and related accessories. It operates in three segments: Passenger vehicle leather upholstery, Passenger vehicle electronic accessories, and automotive parts and motor vehicles. The majority of its revenue comes from the automotive parts and motor vehicle segment, which supplies automotive parts and motor vehicles to passenger vehicle distributors and dealers, mainly located in Singapore. Geographically the majority of its revenues come from Singapore.

Tomo Holdings (HKSE:06928) Headlines

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