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Shihlin Electric & Engineering (TPE:1503) Gross Margin % : 17.99% (As of Dec. 2023)


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What is Shihlin Electric & Engineering Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Shihlin Electric & Engineering's Gross Profit for the three months ended in Dec. 2023 was NT$1,341 Mil. Shihlin Electric & Engineering's Revenue for the three months ended in Dec. 2023 was NT$7,458 Mil. Therefore, Shihlin Electric & Engineering's Gross Margin % for the quarter that ended in Dec. 2023 was 17.99%.

Warning Sign:

Shihlin Electric & Engineering Corp gross margin has been in long-term decline. The average rate of decline per year is -1.4%.


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

TPE:1503' s Gross Margin % Range Over the Past 10 Years
Min: 17.04   Med: 18.6   Max: 20.64
Current: 17.82


During the past 13 years, the highest Gross Margin % of Shihlin Electric & Engineering was 20.64%. The lowest was 17.04%. And the median was 18.60%.

TPE:1503's Gross Margin % is ranked worse than
74.72% of 2935 companies
in the Industrial Products industry
Industry Median: 26.42 vs TPE:1503: 17.82

Shihlin Electric & Engineering had a gross margin of 17.99% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Shihlin Electric & Engineering was -1.40% per year.


Shihlin Electric & Engineering Gross Margin % Historical Data

The historical data trend for Shihlin Electric & Engineering'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.

Shihlin Electric & Engineering Gross Margin % Chart

Shihlin Electric & Engineering Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 18.74 18.45 18.01 17.04 17.82

Shihlin Electric & Engineering Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 14.69 19.09 16.16 17.83 17.99

Competitive Comparison of Shihlin Electric & Engineering's Gross Margin %

For the Electrical Equipment & Parts subindustry, Shihlin Electric & Engineering'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.


Shihlin Electric & Engineering's Gross Margin % Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Shihlin Electric & Engineering's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Shihlin Electric & Engineering's Gross Margin % falls into.



Shihlin Electric & Engineering Gross Margin % Calculation

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

Shihlin Electric & Engineering's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )=Gross Profit (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=5667.8 / 31807.491
=(Revenue - Cost of Goods Sold) / Revenue
=(31807.491 - 26139.696) / 31807.491
=17.82 %

Shihlin Electric & Engineering's Gross Margin for the quarter that ended in Dec. 2023 is calculated as


Gross Margin % (Q: Dec. 2023 )=Gross Profit (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=1341.4 / 7457.724
=(Revenue - Cost of Goods Sold) / Revenue
=(7457.724 - 6116.29) / 7457.724
=17.99 %

* 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.


Shihlin Electric & Engineering  (TPE:1503) 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

Shihlin Electric & Engineering had a gross margin of 17.99% for the quarter that ended in Dec. 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.


Shihlin Electric & Engineering Gross Margin % Related Terms

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


Shihlin Electric & Engineering (TPE:1503) Business Description

Traded in Other Exchanges
N/A
Address
No. 88, Zhongshan North Road, Section 6, 16th Floor, Taipei, TWN, 111
Shihlin Electric & Engineering Corp is a Taiwan-based company The Group is engaged in the manufacture of heavy electrical equipment and machinery and automotive electrical equipment, devices, and related parts The company's product portfolio is categorized into five groups: automobile equipment systems, breaker switchgear and systems, heavy electric systems, and factory automation and system engineering products. The company operates production facilities in Taiwan, mainland China, and Vietnam.

Shihlin Electric & Engineering (TPE:1503) Headlines

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