eFuture Holding (eFuture Holding) Gross Margin % : 41.39% (As of Sep. 2016)

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What is eFuture Holding Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. eFuture Holding's Gross Profit for the three months ended in Sep. 2016 was $2.05 Mil. eFuture Holding's Revenue for the three months ended in Sep. 2016 was $4.95 Mil. Therefore, eFuture Holding's Gross Margin % for the quarter that ended in Sep. 2016 was 41.39%.

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

EFUT's Gross Margin % is not ranked ^*
in the Software industry.
Industry Median: 41.71
* Ranked among companies with meaningful Gross Margin % only.

eFuture Holding had a gross margin of 41.39% for the quarter that ended in Sep. 2016 => Durable competitive advantage

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

eFuture Holding Gross Margin % Historical Data

The historical data trend for eFuture Holding'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.

eFuture Holding Gross Margin % Chart

eFuture Holding Annual Data

Trend

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Gross Margin %

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32.21

39.58

40.20

42.53

41.74

eFuture Holding Quarterly Data
	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16
Gross Margin %	Get a 7-Day Free Trial															45.34	42.33	23.30	38.55	41.39

Competitive Comparison of eFuture Holding's Gross Margin %

For the Software - Application subindustry, eFuture Holding'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.

eFuture Holding's Gross Margin % Distribution in the Software Industry

For the Software industry and Technology sector, eFuture Holding's Gross Margin % distribution charts can be found below:

* The bar in red indicates where eFuture Holding's Gross Margin % falls into.

eFuture Holding Gross Margin % Calculation

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

eFuture Holding's Gross Margin for the fiscal year that ended in Dec. 2015 is calculated as

Gross Margin % (A: Dec. 2015 )	=	Gross Profit (A: Dec. 2015 )	/	Revenue (A: Dec. 2015 )
	=	14.6	/	34.89
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(34.89 - 20.326)	/	34.89
	=	41.74 %

eFuture Holding's Gross Margin for the quarter that ended in Sep. 2016 is calculated as

Gross Margin % (Q: Sep. 2016 )	=	Gross Profit (Q: Sep. 2016 )	/	Revenue (Q: Sep. 2016 )
	=	2	/	4.948
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(4.948 - 2.9)	/	4.948
	=	41.39 %

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.

eFuture Holding (NAS:EFUT) 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

eFuture Holding had a gross margin of 41.39% for the quarter that ended in Sep. 2016 => Durable 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.

eFuture Holding Gross Margin % Related Terms

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eFuture Holding (eFuture Holding) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » eFuture Holding Inc (NAS:EFUT) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.e-future.com.cn

E-Future Information Technology, Inc., established under the Cayman Islands Companies Law on November 2, 2000. The Company changed its name from 'e-Future Information Technology Inc.' to 'eFuture Information Technology Inc.' in December 2008. It provides software and services to China's retail and consumer goods industries. It offers one-stop, end-to-end integrated portfolio of software and services from factory to consumer on seven verticals: Fast Moving Consumer Goods (FMCG), Department Store, Shopping Mall, Grocery, Logistics, Specialty Store and Online Retailers. Its clients include manufacturers, distributors, resellers, logistics companies and retailers. The Company's client base encompasses corporations such as Procter & Gamble, Pepsi, L'Oreal, Kimberly-Clark, Gucci and B&Q as well as Chinese companies. The Company has three business lines: software, professional services and cloud service. Its software solutions include the management of merchandizing, distribution, warehousing, supply chains, customer relationships, logistics and points of sale. It consists of three deployable groups of products: Foundation Solutions, Collaborative Solutions and Intelligent Solutions. Foundation Solutions - are used to meet client needs for services such as retail management, point of sale ('POS'), distribution management, logistics management, warehouse management, vendor payment and control and loyalty card management. Collaborative Solutions - are used to meet client needs for services such as visual SCM and visual process management systems. Depending on the type of customer and their needs, clients use a variety of Collaborative Solutions. Intelligent Solutions - are used to meet client needs for services such as business intelligence, brand analysis, supplier relationship management and customer relationship management systems. Professional Services includes recurring maintenance and support services on existing software installations, delivery services, consulting services and outsourcing services. Maintenance and Support Service - is provided following the installation of its software solutions, as clients will typically require ongoing maintenance support and software upgrades to ensure the efficient operation of their system. Consulting Service - is provided by its consulting services group which consists of business consultants, systems analysts and technical personnel. Outsourcing Service - is flexible by design to meet its clients' changing requirements. Cloud Service consists of cloud services based on cloud computing architecture, such as Salesforce Automation. Its regional service centers in Beijing, Shanghai, Guangzhou, Wuhan, Qingdao, Xi'an, Fuzhou, Hangzhou, Nanjing, Chongqing and Shenzhen.