Gross Margin % is calculated as gross profit divided by its revenue. Mood Media's Gross Profit for the
three
months ended in Mar. 2017 was £46.1 Mil. Mood Media's Revenue for the
three
months ended in Mar. 2017 was £89.3 Mil. Therefore, Mood Media's Gross Margin % for the quarter that ended in Mar. 2017 was 51.61%.
Warning Sign:
Mood Media Corp gross margin has been in long term decline. The average rate of decline per year is -4.3%.
The historical rank and industry rank for Mood Media's Gross Margin % or its related term are showing as below:
LSE:MM.'
s Gross Margin % Range Over the Past 10 Years
Min: 22.71 Med: 53.45 Max: 65.39
Current: 51.79
During the past 10 years, the highestGross Margin % of Mood Media was 65.39%. The lowest was 22.71%. And the median was 53.45%.
LSE:MM.'s Gross Margin % is not ranked
in the Media - Diversified industry.
Industry Median: 38.375
vs LSE:MM.: 51.79
Mood Media had a gross margin of 51.61% for the quarter that ended in Mar. 2017 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Mood Media was -4.30% per year.
Mood Media Gross Margin % Historical Data
The historical data trend for Mood Media'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.
Competitive Comparison of Mood Media's Gross Margin %
For the Advertising Agencies subindustry, Mood Media'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.
Mood Media's Gross Margin % Distribution in the Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Mood Media's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Mood Media's Gross Margin % falls into.
* 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.
Mood Media (LSE:MM.) 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
Mood Media had a gross margin of 51.61% for the quarter that ended in Mar. 2017 => 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.
Mood Media Gross Margin % Related Terms
Thank you for viewing the detailed overview of Mood Media's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Mood Media Corp was continued under the Canada Business Corporations Act on June 17, 2008 under the name Fluid Music Canada, Inc. On June 28, 2010, the Company changed its name to Mood Media Corporation. The Company provides in-store audio, visual, mobile, social and scent marketing solutions to businesses including specialist retailers, department stores, supermarkets, financial institutions and fitness clubs, as well as hotels, car dealerships and restaurants. Proprietary technology and software are used to deploy music from a compiled music library to client sites. This library comes from a diverse network of producers including major labels and independent and emerging artists. The Company reports its continuing operations in three reportable segments, In-store media - International, In-store media - North America, and BIS based on the significant business activity of the Company and its subsidiaries.
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