GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » CGA Mining Limited (ASX:CGX) » Definitions » Gross Margin %

CGA Mining Limited (ASX:CGX) Gross Margin % : 23.35% (As of Sep. 2012)


View and export this data going back to . Start your Free Trial

What is CGA Mining Limited Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. CGA Mining Limited's Gross Profit for the three months ended in Sep. 2012 was A$13.2 Mil. CGA Mining Limited's Revenue for the three months ended in Sep. 2012 was A$56.4 Mil. Therefore, CGA Mining Limited's Gross Margin % for the quarter that ended in Sep. 2012 was 23.35%.

Warning Sign:

CGA Mining Limited gross margin has been in long term decline. The average rate of decline per year is -29.5%.


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

ASX:CGX' s Gross Margin % Range Over the Past 10 Years
Min: 21.23   Med: 100   Max: 100
Current: 23.35


During the past 11 years, the highest Gross Margin % of CGA Mining Limited was 100.00%. The lowest was 21.23%. And the median was 100.00%.

ASX:CGX's Gross Margin % is not ranked
in the Metals & Mining industry.
Industry Median: 19.085 vs ASX:CGX: 23.35

CGA Mining Limited had a gross margin of 23.35% for the quarter that ended in Sep. 2012 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for CGA Mining Limited was -29.50% per year.


CGA Mining Limited Gross Margin % Historical Data

The historical data trend for CGA Mining Limited'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.

CGA Mining Limited Gross Margin % Chart

CGA Mining Limited Annual Data
Trend Jun03 Jun04 Jun05 Jun06 Jun07 Jun08 Jun09 Jun10 Jun11 Jun12
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only - - 29.97 33.70 21.23

CGA Mining Limited Quarterly Data
Dec07 Mar08 Jun08 Sep08 Dec08 Mar09 Jun09 Sep09 Dec09 Mar10 Jun10 Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12
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 -38.08 19.76 31.85 27.11 23.35

Competitive Comparison of CGA Mining Limited's Gross Margin %

For the Gold subindustry, CGA Mining Limited'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.


CGA Mining Limited's Gross Margin % Distribution in the Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, CGA Mining Limited's Gross Margin % distribution charts can be found below:

* The bar in red indicates where CGA Mining Limited's Gross Margin % falls into.



CGA Mining Limited Gross Margin % Calculation

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

CGA Mining Limited's Gross Margin for the fiscal year that ended in Jun. 2012 is calculated as

Gross Margin % (A: Jun. 2012 )=Gross Profit (A: Jun. 2012 ) / Revenue (A: Jun. 2012 )
=39.9 / 187.883
=(Revenue - Cost of Goods Sold) / Revenue
=(187.883 - 148.004) / 187.883
=21.23 %

CGA Mining Limited's Gross Margin for the quarter that ended in Sep. 2012 is calculated as


Gross Margin % (Q: Sep. 2012 )=Gross Profit (Q: Sep. 2012 ) / Revenue (Q: Sep. 2012 )
=13.2 / 56.395
=(Revenue - Cost of Goods Sold) / Revenue
=(56.395 - 43.229) / 56.395
=23.35 %

* 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.


CGA Mining Limited  (ASX:CGX) 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

CGA Mining Limited had a gross margin of 23.35% for the quarter that ended in Sep. 2012 => Competition eroding margins


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.


CGA Mining Limited Gross Margin % Related Terms

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


CGA Mining Limited (ASX:CGX) Business Description

Traded in Other Exchanges
N/A
Address
Website

CGA Mining Limited (ASX:CGX) Headlines

No Headlines