Yiren Digital (Yiren Digital) Gross Margin % : 81.28% (As of Sep. 2023)

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What is Yiren Digital Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Yiren Digital's Gross Profit for the three months ended in Sep. 2023 was $146.0 Mil. Yiren Digital's Revenue for the three months ended in Sep. 2023 was $179.6 Mil. Therefore, Yiren Digital's Gross Margin % for the quarter that ended in Sep. 2023 was 81.28%.

Warning Sign:

Yiren Digital Ltd gross margin has been in long-term decline. The average rate of decline per year is -3.4%.

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

YRD' s Gross Margin % Range Over the Past 10 Years
Min: 59.92 Med: 89.06 Max: 94.44
Current: 80.06

During the past 11 years, the highest Gross Margin % of Yiren Digital was 94.44%. The lowest was 59.92%. And the median was 89.06%.

YRD's Gross Margin % is ranked better than
79.39% of 359 companies
in the Credit Services industry
Industry Median: 54.12 vs YRD: 80.06

Yiren Digital had a gross margin of 81.28% for the quarter that ended in Sep. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Yiren Digital was -3.40% per year.

Yiren Digital Gross Margin % Historical Data

The historical data trend for Yiren Digital'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.

Yiren Digital Gross Margin % Chart

Yiren Digital Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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92.28

72.12

83.01

77.38

80.06

Yiren Digital Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Gross Margin %	Get a 7-Day Free Trial															80.55	79.75	73.84	81.28	85.51

Competitive Comparison of Yiren Digital's Gross Margin %

For the Credit Services subindustry, Yiren Digital'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.

Yiren Digital's Gross Margin % Distribution in the Credit Services Industry

For the Credit Services industry and Financial Services sector, Yiren Digital's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Yiren Digital's Gross Margin % falls into.

Yiren Digital Gross Margin % Calculation

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

Yiren Digital's Gross Margin for the fiscal year that ended in Dec. 2022 is calculated as

Gross Margin % (A: Dec. 2022 )	=	Gross Profit (A: Dec. 2022 )	/	Revenue (A: Dec. 2022 )
	=	381.2	/	492.652
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(492.652 - 111.428)	/	492.652
	=	77.38 %

Yiren Digital's Gross Margin for the quarter that ended in Sep. 2023 is calculated as

Gross Margin % (Q: Sep. 2023 )	=	Gross Profit (Q: Sep. 2023 )	/	Revenue (Q: Sep. 2023 )
	=	146	/	179.61
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(179.61 - 33.621)	/	179.61
	=	81.28 %

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.

Yiren Digital (NYSE:YRD) 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

Yiren Digital had a gross margin of 81.28% for the quarter that ended in Sep. 2023 => Durable 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.

Yiren Digital Gross Margin % Related Terms

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Yiren Digital (Yiren Digital) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Credit Services » Yiren Digital Ltd (NYSE:YRD) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

19YA:Germany 19YA:Germany

Address

118 Jianguo Road, 28th Floor, China Merchants Bureau Building, Chaoyang District, Beijing, CHN, 100022

Website

https://www.yiren.com

Yiren Digital Ltd is a fintech company in China connecting investors and individual borrowers. The Company provides an effective solution to address largely underserved investors and individual borrower demand in China through online and offline channels to efficiently match borrowers with investors and execute loan transactions. The company has three operating segments; the Yiren Wealth segment conducts holistic wealth business, the Yiren Credit segment focuses on consumer credit business, and the Other segment includes electronic commerce business. It derives a majority of its revenue from the Yiren Credit segment.