Shengkai Innovations (Shengkai Innovations) Gross Profit : $6.20 Mil (TTM As of Mar. 2013)

Shengkai Innovations Gross Profit Chart

Shengkai Innovations Quarterly Data
	Jun08	Sep08	Dec08	Mar09	Jun09	Sep09	Dec09	Mar10	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13
Gross Profit	Get a 7-Day Free Trial															2.62	2.21	1.77	1.41	0.80

Competitive Comparison of Shengkai Innovations's Gross Profit

For the Industrial Distribution subindustry, Shengkai Innovations's Gross Profit, along with its competitors' market caps and Gross Profit 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.

Shengkai Innovations's Gross Profit Distribution in the Industrial Distribution Industry

For the Industrial Distribution industry and Industrials sector, Shengkai Innovations's Gross Profit distribution charts can be found below:

* The bar in red indicates where Shengkai Innovations's Gross Profit falls into.

Shengkai Innovations Gross Profit Calculation

Gross Profit is the different between the sale prices and the cost of buying or producing the goods.

Shengkai Innovations's Gross Profit for the fiscal year that ended in Jun. 2012 is calculated as

Shengkai Innovations's Gross Profit for the quarter that ended in Mar. 2013 is calculated as

Gross Profit for the trailing twelve months (TTM) ended in Mar. 2013 adds up the quarterly data reported by the company within the most recent 12 months, which was $6.20 Mil.

Gross Profit is the numerator in the calculation of Gross Margin.

Shengkai Innovations's Gross Margin % for the quarter that ended in Mar. 2013 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.

Shengkai Innovations  (OTCPK:VALV) Gross Profit 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

Shengkai Innovations had a gross margin of 27.14% for the quarter that ended in Mar. 2013 => Competition eroding margins

Shengkai Innovations Gross Profit Related Terms

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Shengkai Innovations (Shengkai Innovations) Business Description