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Trio-Tech International (AMEX:TRT)
Gross Profit
$9.31 Mil (TTM As of Sep. 2015)

Trio-Tech International's gross profit for the three months ended in Sep. 2015 was $2.18 Mil. Trio-Tech International's gross profit for the trailing twelve months (TTM) ended in Sep. 2015 was $9.31 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. 2015 was $2.18 Mil. Trio-Tech International's revenue for the three months ended in Sep. 2015 was $7.93 Mil. Therefore, Trio-Tech International's Gross Margin for the quarter that ended in Sep. 2015 was 27.47%.

Trio-Tech International had a gross margin of 27.47% for the quarter that ended in Sep. 2015 => Competition eroding margins

During the past 13 years, the highest Gross Margin of Trio-Tech International was 27.26%. The lowest was 16.52%. And the median was 23.15%.


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. 2015 is calculated as

Gross Profit (A: Jun. 2015 )=Revenue - Cost of Goods Sold
=33.932 - 25.007
=8.93

Trio-Tech International's Gross Profit for the quarter that ended in Sep. 2015 is calculated as

Gross Profit (Q: Sep. 2015 )=Revenue - Cost of Goods Sold
=7.93 - 5.752
=2.18

Trio-Tech International Gross Profit for the trailing twelve months (TTM) ended in Sep. 2015 was 2.443 (Dec. 2014 ) + 2.488 (Mar. 2015 ) + 2.197 (Jun. 2015 ) + 2.178 (Sep. 2015 ) = $9.31 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. 2015 is calculated as

Gross Margin (Q: Sep. 2015 )=Gross Profit (Q: Sep. 2015 ) / Revenue (Q: Sep. 2015 )
=(Revenue - Cost of Goods Sold) / Revenue
=2.18 / 7.93
=27.47 %

* 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

Trio-Tech International had a gross margin of 27.47% for the quarter that ended in Sep. 2015 => 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

Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14Jun15
Gross_Profit 7.9312.098.984.877.028.325.146.358.308.93

Trio-Tech International Quarterly Data

Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15
Gross_Profit 1.702.091.991.972.251.802.442.492.202.18
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