LG Display Co (XKRX:034220) Gross Margin % : 0.78% (As of Sep. 2023)

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What is LG Display Co Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. LG Display Co's Gross Profit for the three months ended in Sep. 2023 was ₩37,330 Mil. LG Display Co's Revenue for the three months ended in Sep. 2023 was ₩4,785,287 Mil. Therefore, LG Display Co's Gross Margin % for the quarter that ended in Sep. 2023 was 0.78%.

Warning Sign:

LG Display Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -16.2%.

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

XKRX:034220' s Gross Margin % Range Over the Past 10 Years
Min: 4.3 Med: 13.57 Max: 32.24
Current: 32.24

During the past 13 years, the highest Gross Margin % of LG Display Co was 32.24%. The lowest was 4.30%. And the median was 13.57%.

XKRX:034220's Gross Margin % is ranked better than
65.7% of 2437 companies
in the Hardware industry
Industry Median: 24.5 vs XKRX:034220: 32.24

LG Display Co had a gross margin of 0.78% for the quarter that ended in Sep. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for LG Display Co was -16.20% per year.

LG Display Co Gross Margin % Historical Data

The historical data trend for LG Display 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.

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LG Display Co Gross Margin % Chart

LG Display Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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7.96

10.86

17.76

4.30

LG Display 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															-0.27	-8.69	-3.64	0.78	-

Competitive Comparison of LG Display Co's Gross Margin %

For the Consumer Electronics subindustry, LG Display 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.

LG Display Co's Gross Margin % Distribution in the Hardware Industry

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

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

LG Display Co Gross Margin % Calculation

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

LG Display Co's Gross Margin for the fiscal year that ended in Dec. 2022 is calculated as

Gross Margin % (A: Dec. 2022 )	=	Gross Profit (A: Dec. 2022 )	/	Revenue (A: Dec. 2022 )
	=	1124078	/	26151781
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(26151781 - 25027703)	/	26151781
	=	4.30 %

LG Display Co's Gross Margin for the quarter that ended in Sep. 2023 is calculated as

Gross Margin % (Q: Sep. 2023 )	=	Gross Profit (Q: Sep. 2023 )	/	Revenue (Q: Sep. 2023 )
	=	37330	/	4785287
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(4785287 - 4747957)	/	4785287
	=	0.78 %

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.

LG Display Co (XKRX:034220) 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

LG Display Co had a gross margin of 0.78% for the quarter that ended in Sep. 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.

LG Display Co Gross Margin % Related Terms

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LG Display Co (XKRX:034220) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Hardware » LG Display Co Ltd (XKRX:034220) » Definitions » Gross Margin %

Traded in Other Exchanges

LPL:USA LGA:Germany LGA:Germany LGA:Austria

Address

LG Twin Towers, 128 Yeoui-daero, Yeongdeungpo-gu, Seoul, KOR, 07336

Website

https://www.lgdisplay.com

LG Display is a South Korea-based company that is principally engaged in developing, manufacturing and selling TFT-LCD and OLED display panels. The company's products consist of panels for notebook computers, monitors, televisions, smartphones, tablets, and others. The company conducts direct sales through overseas subsidiaries in a number of countries, including the United States, Germany, Japan, Taiwan, China, and Singapore. These subsidiaries conduct sales activities and offer technical support to clients. The company generates the majority of its revenue from overseas markets, with the rest from South Korea.

LG Display Co (XKRX:034220) Headlines

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