GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Powercom Co Ltd (TPE:3043) » Definitions » Gross Margin %

Powercom Co (TPE:3043) Gross Margin % : 23.56% (As of Mar. 2024)


View and export this data going back to 2002. Start your Free Trial

What is Powercom Co Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Powercom Co's Gross Profit for the three months ended in Mar. 2024 was NT$41 Mil. Powercom Co's Revenue for the three months ended in Mar. 2024 was NT$173 Mil. Therefore, Powercom Co's Gross Margin % for the quarter that ended in Mar. 2024 was 23.56%.

Warning Sign:

Powercom Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -1.4%.


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

TPE:3043' s Gross Margin % Range Over the Past 10 Years
Min: 6.7   Med: 20.52   Max: 23.92
Current: 22.3


During the past 13 years, the highest Gross Margin % of Powercom Co was 23.92%. The lowest was 6.70%. And the median was 20.52%.

TPE:3043's Gross Margin % is ranked worse than
62.79% of 2943 companies
in the Industrial Products industry
Industry Median: 26.47 vs TPE:3043: 22.30

Powercom Co had a gross margin of 23.56% for the quarter that ended in Mar. 2024 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Powercom Co was -1.40% per year.


Powercom Co Gross Margin % Historical Data

The historical data trend for Powercom 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.

* Premium members only.

Powercom Co Gross Margin % Chart

Powercom Co 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 22.17 19.95 16.66 23.22 21.08

Powercom Co Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 18.29 25.28 22.94 12.84 23.56

Competitive Comparison of Powercom Co's Gross Margin %

For the Electrical Equipment & Parts subindustry, Powercom 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.


Powercom Co's Gross Margin % Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Powercom Co's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Powercom Co's Gross Margin % falls into.



Powercom Co Gross Margin % Calculation

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

Powercom Co'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 )
=279.7 / 1326.941
=(Revenue - Cost of Goods Sold) / Revenue
=(1326.941 - 1047.283) / 1326.941
=21.08 %

Powercom Co's Gross Margin for the quarter that ended in Mar. 2024 is calculated as


Gross Margin % (Q: Mar. 2024 )=Gross Profit (Q: Mar. 2024 ) / Revenue (Q: Mar. 2024 )
=40.8 / 173.082
=(Revenue - Cost of Goods Sold) / Revenue
=(173.082 - 132.298) / 173.082
=23.56 %

* 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.


Powercom Co  (TPE:3043) 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

Powercom Co had a gross margin of 23.56% 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.


Powercom Co Gross Margin % Related Terms

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


Powercom Co (TPE:3043) Business Description

Traded in Other Exchanges
N/A
Address
Lien Chen Road, 8F, No. 246, Chung Ho District, New Taipei City, TWN
Powercom Co Ltd is a provider of power protection products. Powercom designs, manufacture, trading, and sells electrical equipment and components, Computer and peripheral equipment, Computer-automated equipment, Power electronic device, Battery and General instrument, Electric appliance contracting, and Wholesale of batteries and building materials. In addition, it also provides Energy technical services.

Powercom Co (TPE:3043) Headlines

No Headlines