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CNK International Co (XKRX:039530) Gross Margin % : 4.50% (As of Dec. 2014)


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What is CNK International Co Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. CNK International Co's Gross Profit for the three months ended in Dec. 2014 was ₩116 Mil. CNK International Co's Revenue for the three months ended in Dec. 2014 was ₩2,568 Mil. Therefore, CNK International Co's Gross Margin % for the quarter that ended in Dec. 2014 was 4.50%.


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

XKRX:039530' s Gross Margin % Range Over the Past 10 Years
Min: 1.78   Med: 13.21   Max: 37.62
Current: 3.23


During the past 8 years, the highest Gross Margin % of CNK International Co was 37.62%. The lowest was 1.78%. And the median was 13.21%.

XKRX:039530's Gross Margin % is not ranked
in the Media - Diversified industry.
Industry Median: 37.97 vs XKRX:039530: 3.23

CNK International Co had a gross margin of 4.50% for the quarter that ended in Dec. 2014 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for CNK International Co was 15.60% per year.


CNK International Co Gross Margin % Historical Data

The historical data trend for CNK International Co'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.

CNK International Co Gross Margin % Chart

CNK International Co Annual Data
Trend Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14
Gross Margin %
Get a 7-Day Free Trial 14.46 6.49 37.62 16.12 3.23

CNK International Co Quarterly Data
Mar10 Jun10 Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 20.17 -15.13 25.00 -9.21 4.50

Competitive Comparison of CNK International Co's Gross Margin %

For the Broadcasting subindustry, CNK International Co'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.


CNK International Co's Gross Margin % Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, CNK International Co's Gross Margin % distribution charts can be found below:

* The bar in red indicates where CNK International Co's Gross Margin % falls into.



CNK International Co Gross Margin % Calculation

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

CNK International Co's Gross Margin for the fiscal year that ended in Dec. 2014 is calculated as

Gross Margin % (A: Dec. 2014 )=Gross Profit (A: Dec. 2014 ) / Revenue (A: Dec. 2014 )
=136.9 / 4239.699
=(Revenue - Cost of Goods Sold) / Revenue
=(4239.699 - 4102.811) / 4239.699
=3.23 %

CNK International Co's Gross Margin for the quarter that ended in Dec. 2014 is calculated as


Gross Margin % (Q: Dec. 2014 )=Gross Profit (Q: Dec. 2014 ) / Revenue (Q: Dec. 2014 )
=115.6 / 2567.675
=(Revenue - Cost of Goods Sold) / Revenue
=(2567.675 - 2452.071) / 2567.675
=4.50 %

* 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.


CNK International Co  (XKRX:039530) 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

CNK International Co had a gross margin of 4.50% for the quarter that ended in Dec. 2014 => 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.


CNK International Co Gross Margin % Related Terms

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CNK International Co (XKRX:039530) Business Description

Traded in Other Exchanges
N/A
Address
CNK International Co., Ltd. was established in 1990. The company processes imported gemstones and operates jewelry shops. In 2011, the company converted its business area from grocery manufacturer to metal mining industry.

CNK International Co (XKRX:039530) Headlines

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