Honworld Group Ltd gross margin has been in long-term decline. The average rate of decline per year is -7.9%.
The historical rank and industry rank for Honworld Group's Gross Margin % or its related term are showing as below:
HKSE:02226'
s Gross Margin % Range Over the Past 10 Years
Min: 20.15 Med: 40.79 Max: 57.82
Current: 28.64
During the past 12 years, the highestGross Margin % of Honworld Group was 57.82%. The lowest was 20.15%. And the median was 40.79%.
HKSE:02226's Gross Margin % is ranked better than 58.23% of 1810
companies
in the Consumer Packaged Goods industry
Industry Median: 25.25
vs HKSE:02226: 28.64
Honworld Group had a gross margin of 22.85% for the quarter that ended in Dec. 2023 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Honworld Group was -7.90% per year.
Honworld Group Gross Margin % Historical Data
The historical data trend for Honworld Group'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 Honworld Group's Gross Margin %
For the Packaged Foods subindustry, Honworld Group'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.
Honworld Group's Gross Margin % Distribution in the Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Honworld Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Honworld Group'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.
Honworld Group (HKSE:02226) 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
Honworld Group had a gross margin of 22.85% 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.
Honworld Group Gross Margin % Related Terms
Thank you for viewing the detailed overview of Honworld Group's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Honworld Group Ltd is a China-based investment holding company. Through its subsidiaries, the company is engaged in manufacturing and selling condiment products under the brand name of Lao Heng He in the PRC. Its product categories include High-end, Normal, and Catering Services. The products include healthy brewed cooking wine as well as other condiments, including naturally-brewed soy sauce, naturally-brewed vinegar, soybean paste, sesame oil, and fermented bean curd company operates in a single segment named as Food segment.
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