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China Information Technology, Inc. (NAS:CNIT)
Gross Profit
$11.84 Mil (TTM As of Dec. 2013)

China Information Technology, Inc.'s gross profit for the three months ended in Dec. 2013 was $0.00 Mil. China Information Technology, Inc.'s gross profit for the trailing twelve months (TTM) ended in Dec. 2013 was $11.84 Mil.

Gross Margin is calculated as gross profit divided by its revenue. China Information Technology, Inc.'s gross profit for the three months ended in Dec. 2013 was $0.00 Mil. China Information Technology, Inc.'s revenue for the three months ended in Dec. 2013 was $0.00 Mil. Therefore, China Information Technology, Inc.'s Gross Margin for the quarter that ended in Dec. 2013 was %.

China Information Technology, Inc. had a gross margin of % for the quarter that ended in Dec. 2013 => No sustainable competitive advantage

During the past 9 years, the highest Gross Margin of China Information Technology, Inc. was 100.00%. The lowest was 22.69%. And the median was 45.81%.

Warning Sign:

China Information Technology, Inc. gross margin has been in long term decline. The average rate of decline per year is -15.4%.


Definition

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

China Information Technology, Inc.'s Gross Profit for the fiscal year that ended in Dec. 2013 is calculated as

Gross Profit (A: Dec. 2013 )=Revenue - Cost of Goods Sold
=76.145 - 58.87
=17.28

China Information Technology, Inc.'s Gross Profit for the quarter that ended in Dec. 2013 is calculated as

Gross Profit (Q: Dec. 2013 )=Revenue - Cost of Goods Sold
=0 - 0
=0.00

China Information Technology, Inc. Gross Profit for the trailing twelve months (TTM) ended in Dec. 2013 was 3.391 (Sep. 2012 ) + 8.451 (Dec. 2012 ) + 0 (Jun. 2013 ) + 0 (Dec. 2013 ) = $11.84 Mil.

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

China Information Technology, Inc.'s Gross Margin for the quarter that ended in Dec. 2013 is calculated as

Gross Margin (Q: Dec. 2013 )=Gross Profit (Q: Dec. 2013 ) / Revenue (Q: Dec. 2013 )
=(Revenue - Cost of Goods Sold) / Revenue
=0.00 / 0
= %

* 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

China Information Technology, Inc. had a gross margin of % for the quarter that ended in Dec. 2013 => No sustainable competitive advantage


Related Terms

Cost of Goods Sold, Gross Margin, Revenue


Historical Data

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

China Information Technology, Inc. Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Gross_Profit 0.000.092.0917.6339.0850.6570.5644.3220.5017.28

China Information Technology, Inc. Quarterly Data

Mar11Jun11Sep11Dec11Mar12Jun12Sep12Dec12Jun13Dec13
Gross_Profit 13.6611.929.499.265.782.883.398.450.000.00
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