ZST Digital Networks (ZST Digital Networks) Gross Profit : $43.8 Mil (TTM As of Sep. 2011)

ZST Digital Networks Gross Profit Chart

ZST Digital Networks Quarterly Data
	Dec06	Dec07	Mar08	Jun08	Sep08	Dec08	Mar09	Jun09	Sep09	Dec09	Mar10	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11
Gross Profit	Get a 7-Day Free Trial												10.02	12.35	8.34	10.25	12.84

Competitive Comparison of ZST Digital Networks's Gross Profit

For the Communication Equipment subindustry, ZST Digital Networks'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.

ZST Digital Networks's Gross Profit Distribution in the Hardware Industry

For the Hardware industry and Technology sector, ZST Digital Networks's Gross Profit distribution charts can be found below:

* The bar in red indicates where ZST Digital Networks's Gross Profit falls into.

ZST Digital Networks Gross Profit Calculation

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

ZST Digital Networks's Gross Profit for the fiscal year that ended in Dec. 2010 is calculated as

ZST Digital Networks's Gross Profit for the quarter that ended in Sep. 2011 is calculated as

Gross Profit for the trailing twelve months (TTM) ended in Sep. 2011 adds up the quarterly data reported by the company within the most recent 12 months, which was $43.8 Mil.

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

ZST Digital Networks's Gross Margin % for the quarter that ended in Sep. 2011 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.

ZST Digital Networks  (OTCPK:ZSTN) 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

ZST Digital Networks had a gross margin of 25.58% for the quarter that ended in Sep. 2011 => Competition eroding margins

ZST Digital Networks Gross Profit Related Terms

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ZST Digital Networks (ZST Digital Networks) Business Description