Weichai Power Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -2.6%.
The historical rank and industry rank for Weichai Power Co's Gross Margin % or its related term are showing as below:
WBO:WI4'
s Gross Margin % Range Over the Past 10 Years
Min: 17.78 Med: 21.59 Max: 23.06
Current: 21.09
During the past 13 years, the highestGross Margin % of Weichai Power Co was 23.06%. The lowest was 17.78%. And the median was 21.59%.
WBO:WI4's Gross Margin % is ranked worse than 65.82% of 2937
companies
in the Industrial Products industry
Industry Median: 26.42
vs WBO:WI4: 21.09
Weichai Power Co had a gross margin of 23.66% for the quarter that ended in Dec. 2023 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Weichai Power Co was -2.60% per year.
Weichai Power Co Gross Margin % Historical Data
The historical data trend for Weichai Power Co'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.
Competitive Comparison of Weichai Power Co's Gross Margin %
For the Specialty Industrial Machinery subindustry, Weichai Power Co'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.
Weichai Power Co's Gross Margin % Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, Weichai Power Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Weichai Power Co's Gross Margin % falls into.
* 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.
Weichai Power Co (WBO:WI4) 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
Weichai Power Co had a gross margin of 23.66% for the quarter that ended in Dec. 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.
Weichai Power Co Gross Margin % Related Terms
Thank you for viewing the detailed overview of Weichai Power Co's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Weichai Power Co Ltd is an industrial technology company that offers vehicles, equipment, and logistics and supply chain services in China. The operating segments of the company are 1) Engines segment includes the manufacturing and sale of engines and related parts; 2) Automobiles and automobile components include the manufacturing and sale of automobiles and automobile components other than Engines; 3) Agricultural equipment includes the manufacturing and sale of agricultural equipment (complete machineries), agricultural machineries, agricultural vehicles and related parts; 4) Intelligent logistics includes forklift trucks production, warehousing technology and supply chain solution services.
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