Kian Ann Engineering Limited (SGX:K04) Gross Margin % : 25.73% (As of Sep. 2012)

Kian Ann Engineering Limited Gross Margin % Chart

Kian Ann Engineering Limited Annual Data
	Trend	Jun03	Jun04	Jun05	Jun06	Jun07	Jun08	Jun09	Jun10	Jun11	Jun12
Gross Margin %		Get a 7-Day Free Trial					25.70	26.33	25.39	28.40	27.33

Kian Ann Engineering Limited Quarterly Data
	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12
Gross Margin %	Get a 7-Day Free Trial					28.37	27.44	27.63	25.82	25.73

Competitive Comparison of Kian Ann Engineering Limited's Gross Margin %

For the Industrial Distribution subindustry, Kian Ann Engineering Limited'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.

Kian Ann Engineering Limited's Gross Margin % Distribution in the Industrial Distribution Industry

For the Industrial Distribution industry and Industrials sector, Kian Ann Engineering Limited's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Kian Ann Engineering Limited's Gross Margin % falls into.

Kian Ann Engineering Limited Gross Margin % Calculation

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

Kian Ann Engineering Limited's Gross Margin for the fiscal year that ended in Jun. 2012 is calculated as

Kian Ann Engineering Limited's Gross Margin for the quarter that ended in Sep. 2012 is calculated as

* 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.

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.

Kian Ann Engineering Limited  (SGX:K04) 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

Kian Ann Engineering Limited had a gross margin of 25.73% for the quarter that ended in Sep. 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.

Kian Ann Engineering Limited Gross Margin % Related Terms

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Kian Ann Engineering Limited (SGX:K04) Business Description