Switch to:
Trio-Tech International (AMEX:TRT)
Gross Profit
$7.32 Mil (TTM As of Dec. 2013)

Trio-Tech International's gross profit for the three months ended in Dec. 2013 was $1.99 Mil. Trio-Tech International's gross profit for the trailing twelve months (TTM) ended in Dec. 2013 was $7.32 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Trio-Tech International's gross profit for the three months ended in Dec. 2013 was $1.99 Mil. Trio-Tech International's revenue for the three months ended in Dec. 2013 was $9.34 Mil. Therefore, Trio-Tech International's Gross Margin for the quarter that ended in Dec. 2013 was 21.28%.

Trio-Tech International had a gross margin of 21.28% for the quarter that ended in Dec. 2013 => 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 24.77%.

Warning Sign:

Trio-Tech International gross margin has been in long term decline. The average rate of decline per year is -4.2%.


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. 2013 is calculated as

Gross Profit (A: Jun. 2013 )=Revenue - Cost of Goods Sold
=31.77 - 25.419
=6.35

Trio-Tech International's Gross Profit for the quarter that ended in Dec. 2013 is calculated as

Gross Profit (Q: Dec. 2013 )=Revenue - Cost of Goods Sold
=9.339 - 7.352
=1.99

Trio-Tech International Gross Profit for the trailing twelve months (TTM) ended in Dec. 2013 was 1.164 (Mar. 2013 ) + 2.076 (Jun. 2013 ) + 2.091 (Sep. 2013 ) + 1.987 (Dec. 2013 ) = $7.32 Mil.

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

Trio-Tech International'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
=1.99 / 9.339
=21.28 %

* 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 21.28% for the quarter that ended in Dec. 2013 => 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

Jun04Jun05Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13
Gross_Profit 4.626.057.9312.098.984.877.028.325.146.35

Trio-Tech International Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
Gross_Profit 1.400.760.922.061.841.551.162.082.091.99
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
Hide