China Vanke Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -17.3%.
The historical rank and industry rank for China Vanke Co's Gross Margin % or its related term are showing as below:
SZSE:000002'
s Gross Margin % Range Over the Past 10 Years
Min: 15.23 Med: 29.38 Max: 37.48
Current: 15.24
During the past 13 years, the highestGross Margin % of China Vanke Co was 37.48%. The lowest was 15.23%. And the median was 29.38%.
SZSE:000002's Gross Margin % is ranked worse than 83.86% of 1654
companies
in the Real Estate industry
Industry Median: 36.83
vs SZSE:000002: 15.24
China Vanke Co had a gross margin of 11.35% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for China Vanke Co was -17.30% per year.
China Vanke Co Gross Margin % Historical Data
The historical data trend for China Vanke 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 China Vanke Co's Gross Margin %
For the Real Estate - Development subindustry, China Vanke 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.
China Vanke Co's Gross Margin % Distribution in the Real Estate Industry
For the Real Estate industry and Real Estate sector, China Vanke Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where China Vanke 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.
China Vanke Co (SZSE:000002) 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
China Vanke Co had a gross margin of 11.35% 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.
China Vanke Co Gross Margin % Related Terms
Thank you for viewing the detailed overview of China Vanke Co's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
China Vanke is a large real estate developer in China with residential property sales among the top three of all peers through the past five years. While property development accounts for most of its revenue and earnings, it has expanded its business presence in investment properties such as commercial retail complexes, long-term leasing apartments, and leasable logistical assets. China Vanke also owns an over-60% equity interest in its property management division Onewo, which manages the second-largest gross floor area in China. It is dual-listed in Shenzhen and Hong Kong, and state-owned Shenzhen Metro is the largest shareholder with a 27.2% stake.
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