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Metropolis Capital Holdings (HKSE:08621) Gross Margin % : 29.21% (As of Dec. 2023)


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What is Metropolis Capital Holdings Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Metropolis Capital Holdings's Gross Profit for the three months ended in Dec. 2023 was HK$4.35 Mil. Metropolis Capital Holdings's Revenue for the three months ended in Dec. 2023 was HK$14.89 Mil. Therefore, Metropolis Capital Holdings's Gross Margin % for the quarter that ended in Dec. 2023 was 29.21%.

Warning Sign:

Metropolis Capital Holdings Ltd gross margin has been in long-term decline. The average rate of decline per year is -2.9%.


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

HKSE:08621' s Gross Margin % Range Over the Past 10 Years
Min: 30.18   Med: 38.48   Max: 43.33
Current: 35.72


During the past 8 years, the highest Gross Margin % of Metropolis Capital Holdings was 43.33%. The lowest was 30.18%. And the median was 38.48%.

HKSE:08621's Gross Margin % is ranked worse than
71.79% of 358 companies
in the Credit Services industry
Industry Median: 54.165 vs HKSE:08621: 35.72

Metropolis Capital Holdings had a gross margin of 29.21% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Metropolis Capital Holdings was -2.90% per year.


Metropolis Capital Holdings Gross Margin % Historical Data

The historical data trend for Metropolis Capital 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.

Metropolis Capital Holdings Gross Margin % Chart

Metropolis Capital Holdings Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial 36.64 43.33 40.15 38.06 30.18

Metropolis Capital 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 28.70 50.49 36.70 28.42 29.21

Competitive Comparison of Metropolis Capital Holdings's Gross Margin %

For the Credit Services subindustry, Metropolis Capital 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.


Metropolis Capital Holdings's Gross Margin % Distribution in the Credit Services Industry

For the Credit Services industry and Financial Services sector, Metropolis Capital Holdings's Gross Margin % distribution charts can be found below:

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



Metropolis Capital Holdings Gross Margin % Calculation

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

Metropolis Capital Holdings'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 )
=16.4 / 54.277
=(Revenue - Cost of Goods Sold) / Revenue
=(54.277 - 37.894) / 54.277
=30.18 %

Metropolis Capital 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 )
=4.4 / 14.892
=(Revenue - Cost of Goods Sold) / Revenue
=(14.892 - 10.542) / 14.892
=29.21 %

* 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.


Metropolis Capital Holdings  (HKSE:08621) 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

Metropolis Capital Holdings had a gross margin of 29.21% 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.


Metropolis Capital Holdings Gross Margin % Related Terms

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


Metropolis Capital Holdings (HKSE:08621) Business Description

Traded in Other Exchanges
N/A
Address
Room 7003A, 887 Huai Hai Zhong Road, Huangpu District, Shanghai, CHN, 200020
Metropolis Capital Holdings Ltd is a financial leasing company engaged in providing customized vehicle finance leasing to its customers. The Group categorizes its vehicle finance leasing into typical finance leasing and sale and leaseback arrangements. Typical finance leasing generally involves the leasing of the vehicle acquired by the company from a vehicle dealer prior to a lease transaction, and The sale and leaseback arrangement generally involves the leasing of a new or second-hand vehicle acquired by its customer from a vehicle dealer prior to a lease transaction. The Group's operation is in the People's Republic of China.
Executives
View Art Investment Limited
Chau David

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