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Fortune Valley Treasures Gross Margin %

: 58.87% (As of Mar. 2022)
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Gross Margin % is calculated as gross profit divided by its revenue. Fortune Valley Treasures's Gross Profit for the three months ended in Mar. 2022 was $0.74 Mil. Fortune Valley Treasures's Revenue for the three months ended in Mar. 2022 was $1.26 Mil. Therefore, Fortune Valley Treasures's Gross Margin % for the quarter that ended in Mar. 2022 was 58.87%.


The historical rank and industry rank for Fortune Valley Treasures's Gross Margin % or its related term are showing as below:

FVTI' s Gross Margin % Range Over the Past 10 Years
Min: 21.45   Med: 52.71   Max: 66.56
Current: 54.86


During the past 7 years, the highest Gross Margin % of Fortune Valley Treasures was 66.56%. The lowest was 21.45%. And the median was 52.71%.

FVTI's Gross Margin % is ranked better than
79.12% of 1097 companies
in the Retail - Cyclical industry
Industry Median: 37.48 vs FVTI: 54.86

Fortune Valley Treasures had a gross margin of 58.95% for the quarter that ended in Mar. 2022 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Fortune Valley Treasures was 0.00% per year.


Fortune Valley Treasures Gross Margin % Historical Data

The historical data trend for Fortune Valley Treasures'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.

Fortune Valley Treasures Annual Data
Trend Aug15 Aug16 Aug17 Dec18 Dec19 Dec20 Dec21
Gross Margin %
Premium Member Only Premium Member Only - 51.04 21.45 66.56 54.38

Fortune Valley Treasures Quarterly Data
May17 Aug17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22
Gross Margin % 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 Premium Member Only Premium Member Only Premium Member Only 55.60 56.33 56.36 50.65 58.87

Competitive Comparison

For the Specialty Retail subindustry, Fortune Valley Treasures'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.

   

Fortune Valley Treasures Gross Margin % Distribution

For the Retail - Cyclical industry and Consumer Cyclical sector, Fortune Valley Treasures's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Fortune Valley Treasures's Gross Margin % falls into.



Fortune Valley Treasures Gross Margin % Calculation

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

Fortune Valley Treasures's Gross Margin for the fiscal year that ended in Dec. 2021 is calculated as

Gross Margin % (A: Dec. 2021 )=Gross Profit (A: Dec. 2021 ) / Revenue (A: Dec. 2021 )
=4.4 / 8.022
=(Revenue - Cost of Goods Sold) / Revenue
=(8.022 - 3.66) / 8.022
=54.38 %

Fortune Valley Treasures's Gross Margin for the quarter that ended in Mar. 2022 is calculated as


Gross Margin % (Q: Mar. 2022 )=Gross Profit (Q: Mar. 2022 ) / Revenue (Q: Mar. 2022 )
=0.7 / 1.262
=(Revenue - Cost of Goods Sold) / Revenue
=(1.262 - 0.518) / 1.262
=58.95 %

* 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.


Fortune Valley Treasures  (OTCPK:FVTI) 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

Fortune Valley Treasures had a gross margin of 58.95% for the quarter that ended in Mar. 2022 => Durable 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.


Fortune Valley Treasures Gross Margin % Related Terms

Thank you for viewing the detailed overview of Fortune Valley Treasures's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Fortune Valley Treasures Business Description

Fortune Valley Treasures logo
Industry
Consumer Cyclical » Retail - Cyclical NAICS : 445310 SIC : 5921
Traded in Other Exchanges
N/A
Address
Qiaoxiang Road, Shahe Street, 13th Floor, Building B1, Wisdom Plaza, Nanshan District, Guangdong, Shenzhen, CHN, 518000
Fortune Valley Treasures Inc is engaged in operations of wholesale distribution and retail sales of food and beverage products in the People's Republic of China. The company is into acquiring businesses that are into food, beverage, and alcohol industries. Its products include a variety of wines, such as dry red wine, dry white wine, rose wine, and sweet wine, and other products. Its products are sold to retailers, such as wine shops, convenience stores, and supermarkets.
Executives
Lin Kaihong director, officer: CFO, Treasurer, Director NO. 10 OF TUANJIE 2ND ROAD BEICE, HUMEN DONGGUAN, GUANGDONG F4 518000
Shen Xinlong director, 10 percent owner, officer: CEO, CFO 19F, LIANHE TOWER, 1069 NANHAI AVE, NANSHAN DISTRICT SHENZHEN F4 518000

Fortune Valley Treasures Headlines

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