>
Switch to:

ZTE Gross Margin %

: 36.82% (As of Jun. 2021)
View and export this data going back to 1997. Start your Free Trial

Gross Margin % is calculated as gross profit divided by its revenue. ZTE's Gross Profit for the three months ended in Jun. 2021 was CN¥9,879 Mil. ZTE's Revenue for the three months ended in Jun. 2021 was CN¥26,829 Mil. Therefore, ZTE's Gross Margin % for the quarter that ended in Jun. 2021 was 36.82%.


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

SZSE:000063' s Gross Margin % Range Over the Past 10 Years
Min: 23.81   Med: 31.05   Max: 37.17
Current: 33.05

23.81
37.17

During the past 13 years, the highest Gross Margin % of ZTE was 37.17%. The lowest was 23.81%. And the median was 31.05%.

SZSE:000063's Gross Margin % is ranked higher than
57% of the 500 Companies
in the Hardware industry.

( Industry Median: 35.82 vs. SZSE:000063: 33.05 )

ZTE had a gross margin of 36.82% for the quarter that ended in Jun. 2021 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for ZTE was 2.10% per year.


ZTE Gross Margin % Historical Data

The historical data trend for ZTE'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.

ZTE Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Gross Margin %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 30.75 31.07 32.91 37.17 31.61

ZTE Quarterly Data
Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21
Gross Margin % 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 Premium Member Only Premium Member Only Premium Member Only 28.50 29.87 30.19 35.44 36.82

Competitive Comparison

For the Communication Equipment subindustry, ZTE'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.

   

ZTE Gross Margin % Distribution

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

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



ZTE Gross Margin % Calculation

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

ZTE's Gross Margin for the fiscal year that ended in Dec. 2020 is calculated as

Gross Margin % (A: Dec. 2020 )=Gross Profit (A: Dec. 2020 ) / Revenue (A: Dec. 2020 )
=32071.5 / 101450.67
=(Revenue - Cost of Goods Sold) / Revenue
=(101450.67 - 69379.215) / 101450.67
=31.61 %

ZTE's Gross Margin for the quarter that ended in Jun. 2021 is calculated as


Gross Margin % (Q: Jun. 2021 )=Gross Profit (Q: Jun. 2021 ) / Revenue (Q: Jun. 2021 )
=9879.4 / 26829.323
=(Revenue - Cost of Goods Sold) / Revenue
=(26829.323 - 16949.878) / 26829.323
=36.82 %

* 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.


ZTE  (SZSE:000063) 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

ZTE had a gross margin of 36.82% for the quarter that ended in Jun. 2021 => 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.


ZTE Gross Margin % Related Terms

Thank you for viewing the detailed overview of ZTE's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


ZTE Business Description

ZTE logo
Industry
Technology » Hardware NAICS : 0 SIC : 0
Address
ZTE Plaza, Keji Road South, Hi-Tech Industrial Park, Nanshan District, Guangdong Province, Shenzhen, CHN, 518057
ZTE Corp offers a suite of telecommunications and information technology equipment to carriers, businesses, and the public sector. The firm's product portfolio covers wireless networks, core networks, fixed access, terminals, and other telecom verticals. ZTE generates a majority of its revenue from equipment supporting carriers' networks, but also provides handset terminals and telecom software systems. The Asia-Pacific region accounts for a majority of the firm's revenue, but ZTE also has a presence in Europe and the Americas.

ZTE Headlines

From GuruFocus

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)