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CD International Enterprises Inc (OTCPK:CDII)
Gross Profit
\$0.17 Mil (TTM As of Mar. 2016)

CD International Enterprises Inc's gross profit for the three months ended in Mar. 2016 was \$0.04 Mil. CD International Enterprises Inc's gross profit for the trailing twelve months (TTM) ended in Mar. 2016 was \$0.17 Mil.

Gross Margin is calculated as gross profit divided by its revenue. CD International Enterprises Inc's gross profit for the three months ended in Mar. 2016 was \$0.04 Mil. CD International Enterprises Inc's revenue for the three months ended in Mar. 2016 was \$0.05 Mil. Therefore, CD International Enterprises Inc's Gross Margin for the quarter that ended in Mar. 2016 was 73.47%.

CD International Enterprises Inc had a gross margin of 73.47% for the quarter that ended in Mar. 2016 => Durable competitive advantage

During the past 13 years, the highest Gross Margin of CD International Enterprises Inc was 92.91%. The lowest was 0.66%. And the median was 13.63%.

Definition

Gross Profit is the different between the sale prices and the cost of buying or producing the goods.

CD International Enterprises Inc's Gross Profit for the fiscal year that ended in Sep. 2015 is calculated as

 Gross Profit (A: Sep. 2015 ) = Revenue - Cost of Goods Sold = 0.36 - 0.111 = 0.25

CD International Enterprises Inc's Gross Profit for the quarter that ended in Mar. 2016 is calculated as

 Gross Profit (Q: Mar. 2016 ) = Revenue - Cost of Goods Sold = 0.049 - 0.013 = 0.04

CD International Enterprises Inc Gross Profit for the trailing twelve months (TTM) ended in Mar. 2016 was 0.055 (Jun. 2015 ) + 0.052 (Sep. 2015 ) + 0.026 (Dec. 2015 ) + 0.036 (Mar. 2016 ) = \$0.17 Mil.

Gross Profit is the numerator in the calculation of Gross Margin:

CD International Enterprises Inc's Gross Margin for the quarter that ended in Mar. 2016 is calculated as

 Gross Margin (Q: Mar. 2016 ) = Gross Profit (Q: Mar. 2016 ) / Revenue (Q: Mar. 2016 ) = (Revenue - Cost of Goods Sold) / Revenue = 0.04 / 0.049 = 73.47 %

* All numbers are in millions except for per share data and ratio. All numbers are in their own 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.

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

CD International Enterprises Inc had a gross margin of 73.47% for the quarter that ended in Mar. 2016 => Durable competitive advantage

Related Terms

Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

CD International Enterprises Inc Annual Data

 Dec05 Dec06 Dec07 Dec08 Sep10 Sep11 Sep12 Sep13 Sep14 Sep15 Gross_Profit 1.43 1.47 18.23 33.02 7.18 16.49 4.46 0.01 0.68 0.25

CD International Enterprises Inc Quarterly Data

 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Gross_Profit 0.25 -0.01 0.18 0.26 0.12 0.03 0.06 0.05 0.03 0.04
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