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Dadi Education Holdings (HKSE:08417) Gross Margin % : -84.49% (As of Dec. 2023)


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What is Dadi Education Holdings Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Dadi Education Holdings's Gross Profit for the three months ended in Dec. 2023 was HK$-1.54 Mil. Dadi Education Holdings's Revenue for the three months ended in Dec. 2023 was HK$1.82 Mil. Therefore, Dadi Education Holdings's Gross Margin % for the quarter that ended in Dec. 2023 was -84.49%.

Warning Sign:

Dadi Education Holdings Ltd gross margin has been in long-term decline. The average rate of decline per year is -16.8%.


The historical rank and industry rank for Dadi Education Holdings's Gross Margin % or its related term are showing as below:

HKSE:08417' s Gross Margin % Range Over the Past 10 Years
Min: 23.43   Med: 55.28   Max: 66.21
Current: 23.43


During the past 10 years, the highest Gross Margin % of Dadi Education Holdings was 66.21%. The lowest was 23.43%. And the median was 55.28%.

HKSE:08417's Gross Margin % is ranked worse than
90.36% of 249 companies
in the Education industry
Industry Median: 47.9 vs HKSE:08417: 23.43

Dadi Education Holdings had a gross margin of -84.49% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Dadi Education Holdings was -16.80% per year.


Dadi Education Holdings Gross Margin % Historical Data

The historical data trend for Dadi Education Holdings'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.

Dadi Education Holdings Gross Margin % Chart

Dadi Education Holdings Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 60.39 55.28 42.48 32.71 24.73

Dadi Education Holdings 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 -250.29 57.31 -57.57 41.15 -84.49

Competitive Comparison of Dadi Education Holdings's Gross Margin %

For the Education & Training Services subindustry, Dadi Education Holdings'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.


Dadi Education Holdings's Gross Margin % Distribution in the Education Industry

For the Education industry and Consumer Defensive sector, Dadi Education Holdings's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Dadi Education Holdings's Gross Margin % falls into.



Dadi Education Holdings Gross Margin % Calculation

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

Dadi Education Holdings's Gross Margin for the fiscal year that ended in Mar. 2023 is calculated as

Gross Margin % (A: Mar. 2023 )=Gross Profit (A: Mar. 2023 ) / Revenue (A: Mar. 2023 )
=4.1 / 16.638
=(Revenue - Cost of Goods Sold) / Revenue
=(16.638 - 12.524) / 16.638
=24.73 %

Dadi Education Holdings'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 )
=-1.5 / 1.818
=(Revenue - Cost of Goods Sold) / Revenue
=(1.818 - 3.354) / 1.818
=-84.49 %

* 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.


Dadi Education Holdings  (HKSE:08417) 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

Dadi Education Holdings had a gross margin of -84.49% 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.


Dadi Education Holdings Gross Margin % Related Terms

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Dadi Education Holdings (HKSE:08417) Business Description

Traded in Other Exchanges
N/A
Address
7th Floor, 700 Nathan Road, Units Nos. 702 and 703, Mong Kok, Kowloon, Hong Kong, HKG
Dadi Education Holdings Ltd provides overseas studies consultancy services. The company offers secondary education and higher education services to students in the United Kingdom, Australia, and Canada. The firm delivers consultancy services including study locations, academic requirements of study programs, applications for the study programs and accommodation and travelling arrangements among others.

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