FSPG Hi-Tech Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -2.5%.
The historical rank and industry rank for FSPG Hi-Tech Co's Gross Margin % or its related term are showing as below:
SZSE:000973'
s Gross Margin % Range Over the Past 10 Years
Min: 16.16 Med: 23.32 Max: 26.84
Current: 23.5
During the past 13 years, the highestGross Margin % of FSPG Hi-Tech Co was 26.84%. The lowest was 16.16%. And the median was 23.32%.
SZSE:000973's Gross Margin % is ranked better than 52.39% of 1504
companies
in the Chemicals industry
Industry Median: 22.7
vs SZSE:000973: 23.50
FSPG Hi-Tech Co had a gross margin of 22.60% for the quarter that ended in Mar. 2024 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for FSPG Hi-Tech Co was -2.50% per year.
FSPG Hi-Tech Co Gross Margin % Historical Data
The historical data trend for FSPG Hi-Tech 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 FSPG Hi-Tech Co's Gross Margin %
For the Chemicals subindustry, FSPG Hi-Tech 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.
FSPG Hi-Tech Co's Gross Margin % Distribution in the Chemicals Industry
For the Chemicals industry and Basic Materials sector, FSPG Hi-Tech Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where FSPG Hi-Tech 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.
FSPG Hi-Tech Co (SZSE:000973) 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
FSPG Hi-Tech Co had a gross margin of 22.60% 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.
FSPG Hi-Tech Co Gross Margin % Related Terms
Thank you for viewing the detailed overview of FSPG Hi-Tech Co's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
FSPG Hi-Tech Co (SZSE:000973) Business Description
FSPG Hi-Tech Co Ltd is a China-based company primarily engaged in the research and development, production and sale of new energy, new materials, energy saving technologies and environmental protection products. The company offers Packaging materials, such as BOPA, BOPP drinking straw and cigarette packaging materials, and laminated AL films; Electric and optical materials, such as BOPP capacitor and polarizer films; Construction materials comprising woven fabrics and PE-Xc pipes; Personal Healthcare & Clothing Material such as PE Casting Embossed Film and EasyTexTM and Advertisement & Labeling Material includes PVC Film For Graphics Use. Geographically the operations are carried out through China.
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