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Solargiga Energy Holdings (Solargiga Energy Holdings) Gross Margin % : 6.03% (As of Dec. 2023)


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What is Solargiga Energy Holdings Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Solargiga Energy Holdings's Gross Profit for the six months ended in Dec. 2023 was $31 Mil. Solargiga Energy Holdings's Revenue for the six months ended in Dec. 2023 was $521 Mil. Therefore, Solargiga Energy Holdings's Gross Margin % for the quarter that ended in Dec. 2023 was 6.03%.

Warning Sign:

Solargiga Energy Holdings Ltd gross margin has been in long-term decline. The average rate of decline per year is -11.6%.


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

SEHLF' s Gross Margin % Range Over the Past 10 Years
Min: 3.95   Med: 9.21   Max: 16.45
Current: 6.37


During the past 13 years, the highest Gross Margin % of Solargiga Energy Holdings was 16.45%. The lowest was 3.95%. And the median was 9.21%.

SEHLF's Gross Margin % is ranked worse than
91.18% of 975 companies
in the Semiconductors industry
Industry Median: 28.28 vs SEHLF: 6.37

Solargiga Energy Holdings had a gross margin of 6.03% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Solargiga Energy Holdings was -11.60% per year.


Solargiga Energy Holdings Gross Margin % Historical Data

The historical data trend for Solargiga Energy 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.

Solargiga Energy Holdings Gross Margin % Chart

Solargiga Energy Holdings Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 7.71 9.68 8.73 3.95 6.37

Solargiga Energy Holdings Semi-Annual Data
Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 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 1.84 4.70 3.56 6.73 6.03

Competitive Comparison of Solargiga Energy Holdings's Gross Margin %

For the Solar subindustry, Solargiga Energy 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.


Solargiga Energy Holdings's Gross Margin % Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, Solargiga Energy Holdings's Gross Margin % distribution charts can be found below:

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



Solargiga Energy Holdings Gross Margin % Calculation

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

Solargiga Energy 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 )
=64.1 / 1007.374
=(Revenue - Cost of Goods Sold) / Revenue
=(1007.374 - 943.23) / 1007.374
=6.37 %

Solargiga Energy 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 )
=31.4 / 521.03
=(Revenue - Cost of Goods Sold) / Revenue
=(521.03 - 489.628) / 521.03
=6.03 %

* 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.


Solargiga Energy Holdings  (OTCPK:SEHLF) 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

Solargiga Energy Holdings had a gross margin of 6.03% 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.


Solargiga Energy Holdings Gross Margin % Related Terms

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Solargiga Energy Holdings (Solargiga Energy Holdings) Business Description

Traded in Other Exchanges
Address
25 Harbour Road, Room 1402, Harbour Centre, Wanchai, Hong Kong, HKG
Solargiga Energy Holdings Ltd is a supplier of upstream and downstream solar energy services. It is involved in the manufacturing of, trading of and provision of processing services for polysilicon and monocrystalline silicon solar ingots, the manufacturing, and trading of semiconductor and monocrystalline silicon solar cells, the manufacturing and trading of photovoltaic modules, and the construction and operation of photovoltaic power plants. The company derives the majority of its revenues from the manufacturing and trading of photovoltaic modules. It mainly operates in Mainland China, Japan, Taiwan, Europe, America, and other Asian regions.

Solargiga Energy Holdings (Solargiga Energy Holdings) Headlines

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