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Ahmad Zaki Resources Bhd (XKLS:7078) Gross Margin % : -11.97% (As of Dec. 2023)


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What is Ahmad Zaki Resources Bhd Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Ahmad Zaki Resources Bhd's Gross Profit for the three months ended in Dec. 2023 was RM-8.5 Mil. Ahmad Zaki Resources Bhd's Revenue for the three months ended in Dec. 2023 was RM71.1 Mil. Therefore, Ahmad Zaki Resources Bhd's Gross Margin % for the quarter that ended in Dec. 2023 was -11.97%.

Warning Sign:

Ahmad Zaki Resources Bhd gross margin has been in long-term decline. The average rate of decline per year is -1.8%.


The historical rank and industry rank for Ahmad Zaki Resources Bhd's Gross Margin % or its related term are showing as below:

XKLS:7078' s Gross Margin % Range Over the Past 10 Years
Min: 5.02   Med: 15.97   Max: 19.71
Current: 15.88


During the past 13 years, the highest Gross Margin % of Ahmad Zaki Resources Bhd was 19.71%. The lowest was 5.02%. And the median was 15.97%.

XKLS:7078's Gross Margin % is ranked worse than
57.84% of 1613 companies
in the Construction industry
Industry Median: 19.33 vs XKLS:7078: 15.88

Ahmad Zaki Resources Bhd had a gross margin of -11.97% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Ahmad Zaki Resources Bhd was -1.80% per year.


Ahmad Zaki Resources Bhd Gross Margin % Historical Data

The historical data trend for Ahmad Zaki Resources Bhd'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.

Ahmad Zaki Resources Bhd Gross Margin % Chart

Ahmad Zaki Resources Bhd Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Jun21 Jun22 Jun23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 18.18 12.48 5.02 7.20 19.71

Ahmad Zaki Resources Bhd Quarterly Data
Sep18 Dec18 Mar19 Jun19 Sep19 Mar20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 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 5.26 5.17 47.82 6.99 -11.97

Competitive Comparison of Ahmad Zaki Resources Bhd's Gross Margin %

For the Engineering & Construction subindustry, Ahmad Zaki Resources Bhd'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.


Ahmad Zaki Resources Bhd's Gross Margin % Distribution in the Construction Industry

For the Construction industry and Industrials sector, Ahmad Zaki Resources Bhd's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Ahmad Zaki Resources Bhd's Gross Margin % falls into.



Ahmad Zaki Resources Bhd Gross Margin % Calculation

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

Ahmad Zaki Resources Bhd's Gross Margin for the fiscal year that ended in Jun. 2023 is calculated as

Gross Margin % (A: Jun. 2023 )=Gross Profit (A: Jun. 2023 ) / Revenue (A: Jun. 2023 )
=75 / 380.444
=(Revenue - Cost of Goods Sold) / Revenue
=(380.444 - 305.471) / 380.444
=19.71 %

Ahmad Zaki Resources Bhd'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 )
=-8.5 / 71.128
=(Revenue - Cost of Goods Sold) / Revenue
=(71.128 - 79.639) / 71.128
=-11.97 %

* 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.


Ahmad Zaki Resources Bhd  (XKLS:7078) 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

Ahmad Zaki Resources Bhd had a gross margin of -11.97% 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.


Ahmad Zaki Resources Bhd Gross Margin % Related Terms

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


Ahmad Zaki Resources Bhd (XKLS:7078) Business Description

Traded in Other Exchanges
N/A
Address
No. 71, Persiaran Gurney, Menara AZRB, Kuala Lumpur, SGR, MYS, 54000
Ahmad Zaki Resources Bhd is an investment holding company. The company's operating segment includes Engineering and Construction; Concession; Oil and Gas; Plantation; Property and Others. It generates maximum revenue from the Engineering and Construction segment. The Engineering and Construction segment includes civil and structural works. Geographically, it derives a majority of its revenue from Malaysia. Malaysia region includes civil and structural works, concession assets management, dealing in marine fuels, lubricants, petroleum-based products, logistic management, vessel-related services, property development, investment holding, and provision of management services.

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