Switch to:
Trio-Tech International (AMEX:TRT)
Gross Profit
$8.01 Mil (TTM As of Sep. 2014)

Trio-Tech International's gross profit for the three months ended in Sep. 2014 was $1.80 Mil. Trio-Tech International's gross profit for the trailing twelve months (TTM) ended in Sep. 2014 was $8.01 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Trio-Tech International's gross profit for the three months ended in Sep. 2014 was $1.80 Mil. Trio-Tech International's revenue for the three months ended in Sep. 2014 was $8.09 Mil. Therefore, Trio-Tech International's Gross Margin for the quarter that ended in Sep. 2014 was 22.20%.

Trio-Tech International had a gross margin of 22.20% for the quarter that ended in Sep. 2014 => Competition eroding margins

During the past 13 years, the highest Gross Margin of Trio-Tech International was 46.98%. The lowest was 16.52%. And the median was 24.56%.

Warning Sign:

Trio-Tech International gross margin has been in long term decline. The average rate of decline per year is -1.4%.


Definition

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

Trio-Tech International's Gross Profit for the fiscal year that ended in Jun. 2014 is calculated as

Gross Profit (A: Jun. 2014 )=Revenue - Cost of Goods Sold
=36.262 - 27.963
=8.30

Trio-Tech International's Gross Profit for the quarter that ended in Sep. 2014 is calculated as

Gross Profit (Q: Sep. 2014 )=Revenue - Cost of Goods Sold
=8.093 - 6.296
=1.80

Trio-Tech International Gross Profit for the trailing twelve months (TTM) ended in Sep. 2014 was 1.987 (Dec. 2013 ) + 1.967 (Mar. 2014 ) + 2.254 (Jun. 2014 ) + 1.797 (Sep. 2014 ) = $8.01 Mil.

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

Trio-Tech International's Gross Margin for the quarter that ended in Sep. 2014 is calculated as

Gross Margin (Q: Sep. 2014 )=Gross Profit (Q: Sep. 2014 ) / Revenue (Q: Sep. 2014 )
=(Revenue - Cost of Goods Sold) / Revenue
=1.80 / 8.093
=22.20 %

* 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

Trio-Tech International had a gross margin of 22.20% for the quarter that ended in Sep. 2014 => Competition eroding margins


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.

Trio-Tech International Annual Data

Jun05Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14
Gross_Profit 6.057.9312.098.984.877.028.325.146.358.30

Trio-Tech International Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
Gross_Profit 2.061.841.551.271.702.091.991.972.251.80
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK