WiMi Hologram Cloud (WiMi Hologram Cloud) Gross Margin %

: 30.59% (As of Jun. 2023)

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Gross Margin % is calculated as gross profit divided by its revenue. WiMi Hologram Cloud's Gross Profit for the six months ended in Jun. 2023 was $11.31 Mil. WiMi Hologram Cloud's Revenue for the six months ended in Jun. 2023 was $36.97 Mil. Therefore, WiMi Hologram Cloud's Gross Margin % for the quarter that ended in Jun. 2023 was 30.59%.

Warning Sign:

WiMi Hologram Cloud Inc gross margin has been in long-term decline. The average rate of decline per year is -21.7%.

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

WIMI' s Gross Margin % Range Over the Past 10 Years
Min: 20.97 Med: 40.47 Max: 62.08
Current: 27.21

During the past 6 years, the highest Gross Margin % of WiMi Hologram Cloud was 62.08%. The lowest was 20.97%. And the median was 40.47%.

WIMI's Gross Margin % is ranked worse than
67.81% of 960 companies
in the Media - Diversified industry
Industry Median: 38.785 vs WIMI: 27.21

WiMi Hologram Cloud had a gross margin of 30.59% for the quarter that ended in Jun. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for WiMi Hologram Cloud was -21.70% per year.

WiMi Hologram Cloud Gross Margin % Historical Data

The historical data trend for WiMi Hologram Cloud'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.

WiMi Hologram Cloud Annual Data

Trend

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Gross Margin %

62.08

54.21

22.12

26.73

20.97

WiMi Hologram Cloud Semi-Annual Data
	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23
Gross Margin %								29.65	23.11	19.41	23.70	30.59

Competitive Comparison

For the Advertising Agencies subindustry, WiMi Hologram Cloud'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.

WiMi Hologram Cloud Gross Margin % Distribution

For the Media - Diversified industry and Communication Services sector, WiMi Hologram Cloud's Gross Margin % distribution charts can be found below:

* The bar in red indicates where WiMi Hologram Cloud's Gross Margin % falls into.

WiMi Hologram Cloud Gross Margin % Calculation

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

WiMi Hologram Cloud'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 )
	=	20.5	/	97.866
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(97.866 - 77.348)	/	97.866
	=	20.97 %

WiMi Hologram Cloud'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 )
	=	11.3	/	36.97
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(36.97 - 25.662)	/	36.97
	=	30.59 %

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.

WiMi Hologram Cloud (NAS:WIMI) 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

WiMi Hologram Cloud had a gross margin of 30.59% for the quarter that ended in Jun. 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.

WiMi Hologram Cloud Gross Margin % Related Terms

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WiMi Hologram Cloud (WiMi Hologram Cloud) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » WiMi Hologram Cloud Inc (NAS:WIMI) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

0BF1:Germany

Address

1st West Dawang Road, Room No.2002, Building A, Wentley Center, Chaoyang, Beijing, CHN, 100020

Website

http://ir.wimiar.com

WiMi Hologram Cloud Inc and its subsidiaries offer augmented reality (AR) based holographic services and products to cater to its customers. Its AR service and product offerings primarily consist of holographic AR advertising services and holographic AR entertainment products. It is also into the semiconductor business, in which the company provides central processing algorithm services and computer chip products to enterprise customers and the sales of comprehensive solutions for central processing algorithms and related services with software and hardware integration. The company reports in three segments: AR advertising, AR entertainment, and Semiconductor. Its geographical segments are Mainland China, Hong Kong, and International.