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Aveo Healthcare (ASX:AEH) Gross Margin % : 77.28% (As of Dec. 2013)


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What is Aveo Healthcare Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Aveo Healthcare's Gross Profit for the six months ended in Dec. 2013 was A$4.11 Mil. Aveo Healthcare's Revenue for the six months ended in Dec. 2013 was A$5.31 Mil. Therefore, Aveo Healthcare's Gross Margin % for the quarter that ended in Dec. 2013 was 77.28%.


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


ASX:AEH's Gross Margin % is not ranked *
in the Real Estate industry.
Industry Median: 36.73
* Ranked among companies with meaningful Gross Margin % only.

Aveo Healthcare had a gross margin of 77.28% for the quarter that ended in Dec. 2013 => Durable competitive advantage

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


Aveo Healthcare Gross Margin % Historical Data

The historical data trend for Aveo Healthcare'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.

Aveo Healthcare Gross Margin % Chart

Aveo Healthcare Annual Data
Trend Jun04 Jun05 Jun06 Jun07 Jun08 Jun09 Jun10 Jun11 Jun12 Jun13
Gross Margin %
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Aveo Healthcare Semi-Annual Data
Jun04 Dec04 Jun05 Dec05 Jun06 Dec06 Jun07 Dec07 Jun08 Dec08 Jun09 Dec09 Jun10 Dec10 Jun11 Dec11 Jun12 Dec12 Jun13 Dec13
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 - - - - 77.28

Competitive Comparison of Aveo Healthcare's Gross Margin %

For the Real Estate Services subindustry, Aveo Healthcare'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.


Aveo Healthcare's Gross Margin % Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, Aveo Healthcare's Gross Margin % distribution charts can be found below:

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



Aveo Healthcare Gross Margin % Calculation

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

Aveo Healthcare's Gross Margin for the fiscal year that ended in Jun. 2013 is calculated as

Gross Margin % (A: Jun. 2013 )=Gross Profit (A: Jun. 2013 ) / Revenue (A: Jun. 2013 )
=25.4 / 25.404
=(Revenue - Cost of Goods Sold) / Revenue
=(25.404 - 0) / 25.404
=N/A %

Aveo Healthcare's Gross Margin for the quarter that ended in Dec. 2013 is calculated as


Gross Margin % (Q: Dec. 2013 )=Gross Profit (Q: Dec. 2013 ) / Revenue (Q: Dec. 2013 )
=4.1 / 5.313
=(Revenue - Cost of Goods Sold) / Revenue
=(5.313 - 1.207) / 5.313
=77.28 %

* 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.


Aveo Healthcare  (ASX:AEH) 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

Aveo Healthcare had a gross margin of 77.28% for the quarter that ended in Dec. 2013 => 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.


Aveo Healthcare Gross Margin % Related Terms

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


Aveo Healthcare (ASX:AEH) Business Description

Traded in Other Exchanges
N/A
Address
Aveo Healthcare Ltd provides retirement communities in South-East Queensland. The Company's healthcare's portfolio comprises five retirement villages, located in Albany Creet, Clayfield, Cleveland, Durack and Taringa.

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