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Dongwha Enterprise Co (XKRX:025900) Gross Margin % : 16.07% (As of Dec. 2023)


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What is Dongwha Enterprise Co Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Dongwha Enterprise Co's Gross Profit for the three months ended in Dec. 2023 was ₩39,454 Mil. Dongwha Enterprise Co's Revenue for the three months ended in Dec. 2023 was ₩245,585 Mil. Therefore, Dongwha Enterprise Co's Gross Margin % for the quarter that ended in Dec. 2023 was 16.07%.

Warning Sign:

Dongwha Enterprise Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -8.1%.


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

XKRX:025900' s Gross Margin % Range Over the Past 10 Years
Min: 13.8   Med: 23.63   Max: 28.04
Current: 13.8


During the past 13 years, the highest Gross Margin % of Dongwha Enterprise Co was 28.04%. The lowest was 13.80%. And the median was 23.63%.

XKRX:025900's Gross Margin % is ranked worse than
67.84% of 283 companies
in the Forest Products industry
Industry Median: 19.84 vs XKRX:025900: 13.80

Dongwha Enterprise Co had a gross margin of 16.07% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Dongwha Enterprise Co was -8.10% per year.


Dongwha Enterprise Co Gross Margin % Historical Data

The historical data trend for Dongwha Enterprise 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.

* Premium members only.

Dongwha Enterprise Co Gross Margin % Chart

Dongwha Enterprise Co 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 22.46 23.95 25.18 19.72 13.80

Dongwha Enterprise Co 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 14.77 12.60 12.66 13.79 16.07

Competitive Comparison of Dongwha Enterprise Co's Gross Margin %

For the Lumber & Wood Production subindustry, Dongwha Enterprise 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.


Dongwha Enterprise Co's Gross Margin % Distribution in the Forest Products Industry

For the Forest Products industry and Basic Materials sector, Dongwha Enterprise Co's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Dongwha Enterprise Co's Gross Margin % falls into.



Dongwha Enterprise Co Gross Margin % Calculation

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

Dongwha Enterprise Co'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 )
=132961.6 / 963223.225
=(Revenue - Cost of Goods Sold) / Revenue
=(963223.225 - 830261.609) / 963223.225
=13.80 %

Dongwha Enterprise Co'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 )
=39453.7 / 245584.995
=(Revenue - Cost of Goods Sold) / Revenue
=(245584.995 - 206131.327) / 245584.995
=16.07 %

* 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.


Dongwha Enterprise Co  (XKRX:025900) 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

Dongwha Enterprise Co had a gross margin of 16.07% 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.


Dongwha Enterprise Co Gross Margin % Related Terms

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


Dongwha Enterprise Co (XKRX:025900) Business Description

Traded in Other Exchanges
N/A
Address
53-2, Yeouinaru-ro, Wonchang Building, Yeongdeungpo-gu, Seoul, KOR
Dongwha Enterprise Co Ltd is a Korea-based holding company engaged in manufacturing of PB, MDF, and MFB for furniture and interior design using waste wood and wood by-products, and also the company manufactures chemical and building material. Its chemical material includes LPM, phenolic surface paper, resin, and its building material includes flooring products, wall panels, and treated wood.

Dongwha Enterprise Co (XKRX:025900) Headlines

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