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Subaye (Subaye) Gross Margin % : 85.35% (As of Sep. 2010)


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What is Subaye Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Subaye's Gross Profit for the three months ended in Sep. 2010 was $13.46 Mil. Subaye's Revenue for the three months ended in Sep. 2010 was $15.77 Mil. Therefore, Subaye's Gross Margin % for the quarter that ended in Sep. 2010 was 85.35%.


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


SBAY's Gross Margin % is not ranked *
in the Interactive Media industry.
Industry Median: 60.98
* Ranked among companies with meaningful Gross Margin % only.

Subaye had a gross margin of 85.35% for the quarter that ended in Sep. 2010 => Durable competitive advantage

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


Subaye Gross Margin % Historical Data

The historical data trend for Subaye'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.

Subaye Gross Margin % Chart

Subaye Annual Data
Trend Sep02 Sep03 Sep04 Sep05 Sep06 Sep07 Sep08 Sep09 Sep10
Gross Margin %
Get a 7-Day Free Trial Premium Member Only 57.40 15.48 30.69 77.65 78.84

Subaye Quarterly Data
Dec05 Mar06 Jun06 Sep06 Dec06 Mar07 Jun07 Sep07 Dec07 Mar08 Jun08 Sep08 Dec08 Mar09 Jun09 Sep09 Dec09 Mar10 Jun10 Sep10
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 77.12 44.07 75.65 69.73 85.35

Competitive Comparison of Subaye's Gross Margin %

For the Electronic Gaming & Multimedia subindustry, Subaye'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.


Subaye's Gross Margin % Distribution in the Interactive Media Industry

For the Interactive Media industry and Communication Services sector, Subaye's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Subaye's Gross Margin % falls into.



Subaye Gross Margin % Calculation

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

Subaye's Gross Margin for the fiscal year that ended in Sep. 2010 is calculated as

Gross Margin % (A: Sep. 2010 )=Gross Profit (A: Sep. 2010 ) / Revenue (A: Sep. 2010 )
=30.9 / 39.141
=(Revenue - Cost of Goods Sold) / Revenue
=(39.141 - 8.281) / 39.141
=78.84 %

Subaye's Gross Margin for the quarter that ended in Sep. 2010 is calculated as


Gross Margin % (Q: Sep. 2010 )=Gross Profit (Q: Sep. 2010 ) / Revenue (Q: Sep. 2010 )
=13.5 / 15.773
=(Revenue - Cost of Goods Sold) / Revenue
=(15.773 - 2.31) / 15.773
=85.35 %

* 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.


Subaye  (GREY:SBAY) 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

Subaye had a gross margin of 85.35% for the quarter that ended in Sep. 2010 => 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.


Subaye Gross Margin % Related Terms

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Subaye (Subaye) Business Description

Traded in Other Exchanges
N/A
Address
Xiaoguwei Street, 232 Waihuandong Road, A536-537, 13 Block, Guangzhou, CHN, 510006
Subaye Inc is a video advertising and entertainment media provider in China.

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