Ecosave Holdings (ASX:ECV) Gross Margin % : 36.69% (As of Jun. 2015)

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What is Ecosave Holdings Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Ecosave Holdings's Gross Profit for the six months ended in Jun. 2015 was A$4.37 Mil. Ecosave Holdings's Revenue for the six months ended in Jun. 2015 was A$11.90 Mil. Therefore, Ecosave Holdings's Gross Margin % for the quarter that ended in Jun. 2015 was 36.69%.

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

ASX:ECV' s Gross Margin % Range Over the Past 10 Years
Min: 31.1 Med: 40.34 Max: 57.07
Current: 40.34

During the past 4 years, the highest Gross Margin % of Ecosave Holdings was 57.07%. The lowest was 31.10%. And the median was 40.34%.

ASX:ECV's Gross Margin % is not ranked
in the Utilities - Regulated industry.
Industry Median: 29.23 vs ASX:ECV: 40.34

Ecosave Holdings had a gross margin of 36.69% for the quarter that ended in Jun. 2015 => Competition eroding margins

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

Ecosave Holdings Gross Margin % Historical Data

The historical data trend for Ecosave Holdings'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.

Ecosave Holdings Gross Margin % Chart

Ecosave Holdings Annual Data

Trend

Jun12

Jun13

Jun14

Jun15

Gross Margin %

57.07

31.10

40.34

Ecosave Holdings Semi-Annual Data
	Jun12	Jun13	Dec13	Jun14	Dec14	Jun15
Gross Margin %	Get a 7-Day Free Trial			-	38.61	24.03	44.69	36.69

Competitive Comparison of Ecosave Holdings's Gross Margin %

For the Utilities - Diversified subindustry, Ecosave Holdings'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.

Ecosave Holdings's Gross Margin % Distribution in the Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, Ecosave Holdings's Gross Margin % distribution charts can be found below:

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

Ecosave Holdings Gross Margin % Calculation

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

Ecosave Holdings's Gross Margin for the fiscal year that ended in Jun. 2015 is calculated as

Gross Margin % (A: Jun. 2015 )	=	Gross Profit (A: Jun. 2015 )	/	Revenue (A: Jun. 2015 )
	=	8.8	/	21.9
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(21.9 - 13.065)	/	21.9
	=	40.34 %

Ecosave Holdings's Gross Margin for the quarter that ended in Jun. 2015 is calculated as

Gross Margin % (Q: Jun. 2015 )	=	Gross Profit (Q: Jun. 2015 )	/	Revenue (Q: Jun. 2015 )
	=	4.4	/	11.904
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(11.904 - 7.536)	/	11.904
	=	36.69 %

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.

Ecosave Holdings (ASX:ECV) 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

Ecosave Holdings had a gross margin of 36.69% for the quarter that ended in Jun. 2015 => 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.

Ecosave Holdings Gross Margin % Related Terms

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Ecosave Holdings (ASX:ECV) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Regulated » Ecosave Holdings Ltd (ASX:ECV) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.ecosave.com.au

Ecosave Holdings Ltd was incorporated on 22 October 2012 as the holding company of Ecosave Pty Limited. The Company provides energy performance contracts, energy and water savings projects, utility management services and consulting services.

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