Energy Developments (ASX:ENE) Gross Margin % : 54.87% (As of Jun. 2015)

Energy Developments Gross Margin % Chart

Energy Developments Annual Data
	Trend	Jun06	Jun07	Jun08	Jun09	Jun10	Jun11	Jun12	Jun13	Jun14	Jun15
Gross Margin %		Get a 7-Day Free Trial					53.19	47.12	46.21	45.97	51.83

Energy Developments Semi-Annual Data
	Dec05	Jun06	Dec06	Jun07	Dec07	Jun08	Dec08	Jun09	Dec09	Jun10	Dec10	Jun11	Dec11	Jun12	Dec12	Jun13	Dec13	Jun14	Dec14	Jun15
Gross Margin %	Get a 7-Day Free Trial															46.49	44.45	47.38	48.47	54.87

Competitive Comparison of Energy Developments's Gross Margin %

For the Utilities - Regulated Electric subindustry, Energy Developments'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.

Energy Developments's Gross Margin % Distribution in the Utilities - Regulated Industry

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

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

Energy Developments Gross Margin % Calculation

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

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

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

* 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.

Energy Developments  (ASX:ENE) 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

Energy Developments had a gross margin of 54.87% for the quarter that ended in Jun. 2015 => 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.

Energy Developments Gross Margin % Related Terms

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Energy Developments (ASX:ENE) Business Description