Hainan Haiyao Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -6.1%.
The historical rank and industry rank for Hainan Haiyao Co's Gross Margin % or its related term are showing as below:
SZSE:000566'
s Gross Margin % Range Over the Past 10 Years
Min: 38.42 Med: 43.65 Max: 53.46
Current: 38.42
During the past 13 years, the highestGross Margin % of Hainan Haiyao Co was 53.46%. The lowest was 38.42%. And the median was 43.65%.
SZSE:000566's Gross Margin % is ranked worse than 65.72% of 986
companies
in the Drug Manufacturers industry
Industry Median: 46.48
vs SZSE:000566: 38.42
Hainan Haiyao Co had a gross margin of 38.96% for the quarter that ended in Mar. 2024 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Hainan Haiyao Co was -6.10% per year.
Hainan Haiyao Co Gross Margin % Historical Data
The historical data trend for Hainan Haiyao Co'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 Hainan Haiyao Co's Gross Margin %
For the Drug Manufacturers - Specialty & Generic subindustry, Hainan Haiyao Co'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.
Hainan Haiyao Co's Gross Margin % Distribution in the Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Hainan Haiyao Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Hainan Haiyao Co'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.
Hainan Haiyao Co (SZSE:000566) 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
Hainan Haiyao Co had a gross margin of 38.96% for the quarter that ended in Mar. 2024 => 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.
Hainan Haiyao Co Gross Margin % Related Terms
Thank you for viewing the detailed overview of Hainan Haiyao Co's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Hainan Haiyao Co (SZSE:000566) Business Description
Hainan Haiyao Co Ltd is a China-based company engages in the research, development, manufacture, and sale of medicines and medical instrument. Its product includes cephalosporin series, stomach and intestine medicines, anti-tumor medicines, cochlear implant series, bulk drugs and intermediate series. The company distributes its products in domestic market and to overseas market. Digital China Information Service Co Ltd is a China-based company principally engaged in software and information technology (IT) service industry. Its services include technical services, agricultural informatization, application software development, special financial equipment, and integrated solutions for the financial, government, enterprises, telecommunications, agriculture, and other industries.
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