Deer Consumer Products (Deer Consumer Products) Gross Margin % : 29.22% (As of Jun. 2012)

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What is Deer Consumer Products Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Deer Consumer Products's Gross Profit for the three months ended in Jun. 2012 was $13.2 Mil. Deer Consumer Products's Revenue for the three months ended in Jun. 2012 was $45.0 Mil. Therefore, Deer Consumer Products's Gross Margin % for the quarter that ended in Jun. 2012 was 29.22%.

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

DEER's Gross Margin % is not ranked ^*
in the Furnishings, Fixtures & Appliances industry.
Industry Median: 28.76
* Ranked among companies with meaningful Gross Margin % only.

Deer Consumer Products had a gross margin of 29.22% for the quarter that ended in Jun. 2012 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Deer Consumer Products was 0.00% per year.

Deer Consumer Products Gross Margin % Historical Data

The historical data trend for Deer Consumer Products'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.

Deer Consumer Products Gross Margin % Chart

Deer Consumer Products Annual Data

Trend

Sep07

Dec08

Dec09

Dec10

Dec11

Gross Margin %

22.06

24.79

28.76

30.52

Deer Consumer Products Quarterly Data
	Sep07	Dec07	Mar08	Jun08	Sep08	Dec08	Mar09	Jun09	Sep09	Dec09	Mar10	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12
Gross Margin %	Get a 7-Day Free Trial															29.14	30.49	32.25	31.12	29.22

Competitive Comparison of Deer Consumer Products's Gross Margin %

For the Furnishings, Fixtures & Appliances subindustry, Deer Consumer Products'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.

Deer Consumer Products's Gross Margin % Distribution in the Furnishings, Fixtures & Appliances Industry

For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, Deer Consumer Products's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Deer Consumer Products's Gross Margin % falls into.

Deer Consumer Products Gross Margin % Calculation

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

Deer Consumer Products's Gross Margin for the fiscal year that ended in Dec. 2011 is calculated as

Gross Margin % (A: Dec. 2011 )	=	Gross Profit (A: Dec. 2011 )	/	Revenue (A: Dec. 2011 )
	=	69.2	/	226.749
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(226.749 - 157.538)	/	226.749
	=	30.52 %

Deer Consumer Products's Gross Margin for the quarter that ended in Jun. 2012 is calculated as

Gross Margin % (Q: Jun. 2012 )	=	Gross Profit (Q: Jun. 2012 )	/	Revenue (Q: Jun. 2012 )
	=	13.2	/	45.006
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(45.006 - 31.856)	/	45.006
	=	29.22 %

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.

Deer Consumer Products (OTCPK:DEER) 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

Deer Consumer Products had a gross margin of 29.22% for the quarter that ended in Jun. 2012 => Competition eroding margins

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.

Deer Consumer Products Gross Margin % Related Terms

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