Switch to:
Trio-Tech International (AMEX:TRT)
Gross Profit
$8.30 Mil (TTM As of Jun. 2014)

Trio-Tech International's gross profit for the three months ended in Jun. 2014 was $2.25 Mil. Trio-Tech International's gross profit for the trailing twelve months (TTM) ended in Jun. 2014 was $8.30 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Trio-Tech International's gross profit for the three months ended in Jun. 2014 was $2.25 Mil. Trio-Tech International's revenue for the three months ended in Jun. 2014 was $9.39 Mil. Therefore, Trio-Tech International's Gross Margin for the quarter that ended in Jun. 2014 was 24.01%.

Trio-Tech International had a gross margin of 24.01% for the quarter that ended in Jun. 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 Jun. 2014 is calculated as

Gross Profit (Q: Jun. 2014 )=Revenue - Cost of Goods Sold
=9.387 - 7.133
=2.25

Trio-Tech International Gross Profit for the trailing twelve months (TTM) ended in Jun. 2014 was 2.091 (Sep. 2013 ) + 1.987 (Dec. 2013 ) + 1.967 (Mar. 2014 ) + 2.254 (Jun. 2014 ) = $8.30 Mil.

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

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

Gross Margin (Q: Jun. 2014 )=Gross Profit (Q: Jun. 2014 ) / Revenue (Q: Jun. 2014 )
=(Revenue - Cost of Goods Sold) / Revenue
=2.25 / 9.387
=24.01 %

* 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 24.01% for the quarter that ended in Jun. 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

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
Gross_Profit 0.922.061.841.551.271.702.091.991.972.25
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