New World China Land (New World China Land) Gross Margin % : 32.45% (As of Dec. 2015)

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What is New World China Land Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. New World China Land's Gross Profit for the six months ended in Dec. 2015 was $305.65 Mil. New World China Land's Revenue for the six months ended in Dec. 2015 was $941.91 Mil. Therefore, New World China Land's Gross Margin % for the quarter that ended in Dec. 2015 was 32.45%.

The historical rank and industry rank for New World China Land's Gross Margin % or its related term are showing as below:

NWRDY' s Gross Margin % Range Over the Past 10 Years
Min: 24.17 Med: 34.33 Max: 45.03
Current: 37.86

During the past 13 years, the highest Gross Margin % of New World China Land was 45.03%. The lowest was 24.17%. And the median was 34.33%.

NWRDY's Gross Margin % is not ranked
in the Real Estate industry.
Industry Median: 36.73 vs NWRDY: 37.86

New World China Land had a gross margin of 32.45% for the quarter that ended in Dec. 2015 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for New World China Land was 9.50% per year.

New World China Land Gross Margin % Historical Data

The historical data trend for New World China Land'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.

New World China Land Gross Margin % Chart

New World China Land Annual Data

Trend

Jun06

Jun07

Jun08

Jun09

Jun10

Jun11

Jun12

Jun13

Jun14

Jun15

Gross Margin %

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31.39

45.03

41.84

41.56

39.16

New World China Land Semi-Annual Data
	Jun04	Jun05	Jun06	Jun07	Jun08	Dec08	Jun09	Dec09	Jun10	Dec10	Jun11	Dec11	Jun12	Dec12	Jun13	Dec13	Jun14	Dec14	Jun15	Dec15
Gross Margin %	Get a 7-Day Free Trial															46.98	35.09	35.88	42.23	32.45

Competitive Comparison of New World China Land's Gross Margin %

For the Real Estate - Development subindustry, New World China Land'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.

New World China Land's Gross Margin % Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, New World China Land's Gross Margin % distribution charts can be found below:

* The bar in red indicates where New World China Land's Gross Margin % falls into.

New World China Land Gross Margin % Calculation

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

New World China Land's Gross Margin for the fiscal year that ended in Jun. 2015 is calculated as

Gross Margin % (A: Jun. 2015 )	=	Gross Profit (A: Jun. 2015 )	/	Revenue (A: Jun. 2015 )
	=	882	/	2251.991
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(2251.991 - 1370.015)	/	2251.991
	=	39.16 %

New World China Land's Gross Margin for the quarter that ended in Dec. 2015 is calculated as

Gross Margin % (Q: Dec. 2015 )	=	Gross Profit (Q: Dec. 2015 )	/	Revenue (Q: Dec. 2015 )
	=	305.7	/	941.908
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(941.908 - 636.255)	/	941.908
	=	32.45 %

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.

New World China Land (OTCPK:NWRDY) 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

New World China Land had a gross margin of 32.45% for the quarter that ended in Dec. 2015 => 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.

New World China Land Gross Margin % Related Terms

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New World China Land (New World China Land) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » Real Estate » New World China Land Ltd (OTCPK:NWRDY) » Definitions » Gross Margin %

Traded in Other Exchanges

N/A

Address

Website

http://www.nwcl.com.hk

New World China Land Ltd is a real estate company. It develops and invests in properties and real estate in China. The firm's projects include residential communities, serviced apartments, villas, offices, shopping centers, mixed-use comprehensive buildings, hotels, and resorts. It derives the majority of its revenues from proceeds from the sale of properties. The company's majority of assets and operation are located in China.

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