Kingold Jewelry (Kingold Jewelry) Gross Margin % : 3.96% (As of Sep. 2019)

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What is Kingold Jewelry Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Kingold Jewelry's Gross Profit for the three months ended in Sep. 2019 was $15 Mil. Kingold Jewelry's Revenue for the three months ended in Sep. 2019 was $383 Mil. Therefore, Kingold Jewelry's Gross Margin % for the quarter that ended in Sep. 2019 was 3.96%.

The historical rank and industry rank for Kingold Jewelry's Gross Margin % or its related term are showing as below:

KGJI's Gross Margin % is not ranked ^*
in the Retail - Cyclical industry.
Industry Median: 36.63
* Ranked among companies with meaningful Gross Margin % only.

Kingold Jewelry had a gross margin of 3.96% for the quarter that ended in Sep. 2019 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Kingold Jewelry was 0.00% per year.

Kingold Jewelry Gross Margin % Historical Data

The historical data trend for Kingold Jewelry's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Kingold Jewelry Gross Margin % Chart

Kingold Jewelry Annual Data

Trend

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Gross Margin %

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6.88

3.83

10.30

9.95

10.68

Kingold Jewelry Quarterly Data
	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17	Jun17	Sep17	Dec17	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19
Gross Margin %	Get a 7-Day Free Trial															9.78	11.89	12.19	11.63	3.96

Competitive Comparison of Kingold Jewelry's Gross Margin %

For the Luxury Goods subindustry, Kingold Jewelry's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Kingold Jewelry's Gross Margin % Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Kingold Jewelry's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Kingold Jewelry's Gross Margin % falls into.

Kingold Jewelry Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Kingold Jewelry's Gross Margin for the fiscal year that ended in Dec. 2018 is calculated as

Gross Margin % (A: Dec. 2018 )	=	Gross Profit (A: Dec. 2018 )	/	Revenue (A: Dec. 2018 )
	=	264.3	/	2475.666
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(2475.666 - 2211.343)	/	2475.666
	=	10.68 %

Kingold Jewelry's Gross Margin for the quarter that ended in Sep. 2019 is calculated as

Gross Margin % (Q: Sep. 2019 )	=	Gross Profit (Q: Sep. 2019 )	/	Revenue (Q: Sep. 2019 )
	=	15.2	/	382.79
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(382.79 - 367.618)	/	382.79
	=	3.96 %

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.

Kingold Jewelry (GREY:KGJI) Gross Margin % 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

Kingold Jewelry had a gross margin of 3.96% for the quarter that ended in Sep. 2019 => No sustainable competitive advantage

Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.

Kingold Jewelry Gross Margin % Related Terms

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Kingold Jewelry (Kingold Jewelry) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Kingold Jewelry Inc (GREY:KGJI) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

No. 8 Han Huang Road, Jiang'an District, Hubei Province, 15 Huangpu Science & Technology Park, Wuhan, CHN, 430023

Website

http://www.kingoldjewelry.com

Kingold Jewelry Inc designs and manufactures 24-karat gold jewelry and Chinese ornaments. The company along with its subsidiaries develops markets and sells products including gold necklaces, rings, earrings, bracelets, and pendants to the jewelry market in China. The company also sells gold bars and coins and other products through various banks in China. It derives most of its revenues from the sales of 24-karat jewelry and Chinese ornaments and from design and processing fees.

Executives