Differ Group Auto Ltd gross margin has been in long-term decline. The average rate of decline per year is -24.5%.
The historical rank and industry rank for Differ Group Auto's Gross Margin % or its related term are showing as below:
HKSE:06878'
s Gross Margin % Range Over the Past 10 Years
Min: 4.65 Med: 57.56 Max: 93.52
Current: 20.87
During the past 11 years, the highestGross Margin % of Differ Group Auto was 93.52%. The lowest was 4.65%. And the median was 57.56%.
HKSE:06878's Gross Margin % is ranked worse than 84.44% of 360
companies
in the Credit Services industry
Industry Median: 53.335
vs HKSE:06878: 20.87
Differ Group Auto had a gross margin of 28.98% for the quarter that ended in Jun. 2023 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Differ Group Auto was -24.50% per year.
Differ Group Auto Gross Margin % Historical Data
The historical data trend for Differ Group Auto'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 Differ Group Auto's Gross Margin %
For the Credit Services subindustry, Differ Group Auto'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.
Differ Group Auto's Gross Margin % Distribution in the Credit Services Industry
For the Credit Services industry and Financial Services sector, Differ Group Auto's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Differ Group Auto'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.
Differ Group Auto (HKSE:06878) 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
Differ Group Auto had a gross margin of 28.98% for the quarter that ended in Jun. 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.
Differ Group Auto Gross Margin % Related Terms
Thank you for viewing the detailed overview of Differ Group Auto's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Differ Group Auto (HKSE:06878) Business Description
Differ Group Auto Ltd, formerly Differ Group Holding Co Ltd provides finance leases to corporate customers, which are mainly small and medium enterprises, incorporated and operating in Mainland China. The reportable segments of the Group are, Financial services segment includes the provision of guarantee services, express loan services, consultancy services, finance lease services, financial securities services, and assets management in the PRC and Hong Kong; Property development and investment segment includes property development projects and property investment activities in the PRC; Trading of commodities segment includes trading of commodities in the PRC; and Automobile e-commerce includes online e-commerce platform in the automobile industry in the PRC.
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