Erayak Power Solution Group (Erayak Power Solution Group) Gross Margin % : 20.17% (As of Dec. 2023)

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What is Erayak Power Solution Group Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Erayak Power Solution Group's Gross Profit for the six months ended in Dec. 2023 was $2.19 Mil. Erayak Power Solution Group's Revenue for the six months ended in Dec. 2023 was $10.87 Mil. Therefore, Erayak Power Solution Group's Gross Margin % for the quarter that ended in Dec. 2023 was 20.17%.

The historical rank and industry rank for Erayak Power Solution Group's Gross Margin % or its related term are showing as below:

RAYA' s Gross Margin % Range Over the Past 10 Years
Min: 24.6 Med: 25.2 Max: 30.7
Current: 24.72

During the past 5 years, the highest Gross Margin % of Erayak Power Solution Group was 30.70%. The lowest was 24.60%. And the median was 25.20%.

RAYA's Gross Margin % is ranked worse than
55.2% of 2940 companies
in the Industrial Products industry
Industry Median: 26.39 vs RAYA: 24.72

Erayak Power Solution Group had a gross margin of 20.17% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Erayak Power Solution Group was 0.00% per year.

Erayak Power Solution Group Gross Margin % Historical Data

The historical data trend for Erayak Power Solution 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.

* Premium members only.

Erayak Power Solution Group Gross Margin % Chart

Erayak Power Solution Group Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

25.20

26.90

30.70

24.60

24.72

Erayak Power Solution Group Semi-Annual Data
	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Gross Margin %	Get a 7-Day Free Trial				30.59	33.75	17.79	29.95	20.17

Competitive Comparison of Erayak Power Solution Group's Gross Margin %

For the Electrical Equipment & Parts subindustry, Erayak Power Solution 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.

Erayak Power Solution Group's Gross Margin % Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Erayak Power Solution Group's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Erayak Power Solution Group's Gross Margin % falls into.

Erayak Power Solution Group Gross Margin % Calculation

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

Erayak Power Solution Group'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 )
	=	5	/	20.322
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(20.322 - 15.299)	/	20.322
	=	24.72 %

Erayak Power Solution Group'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 )
	=	2.2	/	10.873
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(10.873 - 8.68)	/	10.873
	=	20.17 %

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.

Erayak Power Solution Group (NAS:RAYA) 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

Erayak Power Solution Group had a gross margin of 20.17% 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.

Erayak Power Solution Group Gross Margin % Related Terms

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Erayak Power Solution Group (Erayak Power Solution Group) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Erayak Power Solution Group Inc (NAS:RAYA) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

No. 528, 4th Avenue, Binhai Industrial Park, Zhejiang Province, Wenzhou, CHN, 325025

Website

https://www.erayakpower.com

Erayak Power Solution Group Inc engages in manufacturing, research and development, and wholesale and retail of power solution products. Its product portfolio includes sine wave and off-grid inverters, inverter and gasoline generators, battery, and smart chargers, and custom-designed products. It derives the majority revenue from three products namely inverters, chargers, and gasoline generators.