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Fang Holdings (Fang Holdings) Gross Margin % : 91.06% (As of Sep. 2020)


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What is Fang Holdings Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Fang Holdings's Gross Profit for the three months ended in Sep. 2020 was $51.6 Mil. Fang Holdings's Revenue for the three months ended in Sep. 2020 was $56.7 Mil. Therefore, Fang Holdings's Gross Margin % for the quarter that ended in Sep. 2020 was 91.06%.


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


SFUNY's Gross Margin % is not ranked *
in the Interactive Media industry.
Industry Median: 60.98
* Ranked among companies with meaningful Gross Margin % only.

Fang Holdings had a gross margin of 91.06% for the quarter that ended in Sep. 2020 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Fang Holdings was 0.00% per year.


Fang Holdings Gross Margin % Historical Data

The historical data trend for Fang 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.

* Premium members only.

Fang Holdings Gross Margin % Chart

Fang Holdings Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 25.01 58.62 80.67 87.14 91.85

Fang Holdings Quarterly Data
Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 88.09 85.87 94.61 91.06 93.73

Competitive Comparison of Fang Holdings's Gross Margin %

For the Internet Content & Information subindustry, Fang 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.


Fang Holdings's Gross Margin % Distribution in the Interactive Media Industry

For the Interactive Media industry and Communication Services sector, Fang Holdings's Gross Margin % distribution charts can be found below:

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



Fang Holdings Gross Margin % Calculation

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

Fang Holdings's Gross Margin for the fiscal year that ended in Dec. 2019 is calculated as

Gross Margin % (A: Dec. 2019 )=Gross Profit (A: Dec. 2019 ) / Revenue (A: Dec. 2019 )
=191.5 / 219.711
=(Revenue - Cost of Goods Sold) / Revenue
=(219.711 - 28.26) / 219.711
=87.14 %

Fang Holdings's Gross Margin for the quarter that ended in Sep. 2020 is calculated as


Gross Margin % (Q: Sep. 2020 )=Gross Profit (Q: Sep. 2020 ) / Revenue (Q: Sep. 2020 )
=51.6 / 56.677
=(Revenue - Cost of Goods Sold) / Revenue
=(56.677 - 5.066) / 56.677
=91.06 %

* 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.


Fang Holdings  (OTCPK:SFUNY) 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

Fang Holdings had a gross margin of 91.06% for the quarter that ended in Sep. 2020 => 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.


Fang Holdings Gross Margin % Related Terms

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Fang Holdings (Fang Holdings) Business Description

Traded in Other Exchanges
N/A
Address
Tower A, No. 20 Guogongzhuang Middle Street, Fengtai District, Beijing, CHN, 100070
Fang Holdings Ltd operates in the Chinese internet portal industry. The company handles a real estate business through its web platform, www.fang.com, and a mobile application. The website serves as a one-stop avenue for the users to buy new and second homes, office buildings, and accommodation facilities available for rent in different parts of China. Real estate buyers can also avail of other services such as entrusted loans, mortgage loans, and other financial services that the company provides in the event of its credit assessment requirements being fulfilled. The group generates most of its revenues from new home sales through its e-commerce platform. A part of its income is also derived from marketing, listing, and financial services.