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Direct Nickel (ASX:DIR) Gross Margin % : 0.00% (As of Dec. 2014)


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What is Direct Nickel Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Direct Nickel's Gross Profit for the six months ended in Dec. 2014 was A$0.01 Mil. Direct Nickel's Revenue for the six months ended in Dec. 2014 was A$0.01 Mil. Therefore, Direct Nickel's Gross Margin % for the quarter that ended in Dec. 2014 was 0.00%. If there's no value for Cost of Goods Sold, then Gross Margin % is not calculated.


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


ASX:DIR's Gross Margin % is not ranked *
in the Metals & Mining industry.
Industry Median: 19.14
* Ranked among companies with meaningful Gross Margin % only.

Direct Nickel had a gross margin of N/A% for the quarter that ended in Dec. 2014 => No sustainable competitive advantage

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


Direct Nickel Gross Margin % Historical Data

The historical data trend for Direct Nickel'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.

Direct Nickel Gross Margin % Chart

Direct Nickel Annual Data
Trend Jun05 Jun06 Jun07 Jun08 Jun09 Jun10 Jun11 Jun12 Jun13 Jun14
Gross Margin %
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Direct Nickel Semi-Annual Data
Jun04 Dec04 Jun05 Dec06 Jun07 Dec07 Jun08 Dec08 Jun09 Dec09 Jun10 Dec10 Jun11 Dec11 Jun12 Dec12 Jun13 Dec13 Jun14 Dec14
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Competitive Comparison of Direct Nickel's Gross Margin %

For the Other Industrial Metals & Mining subindustry, Direct Nickel'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.


Direct Nickel's Gross Margin % Distribution in the Metals & Mining Industry

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

* The bar in red indicates where Direct Nickel's Gross Margin % falls into.



Direct Nickel Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue. (Note that if there's no value for Cost of Goods Sold, then Gross Margin % is not calculated.)

Direct Nickel's Gross Margin for the fiscal year that ended in Jun. 2014 is calculated as

Gross Margin % (A: Jun. 2014 )=Gross Profit (A: Jun. 2014 ) / Revenue (A: Jun. 2014 )
=0.1 / 0.096
=(Revenue - Cost of Goods Sold) / Revenue
=(0.096 - 0) / 0.096
=N/A %

Direct Nickel's Gross Margin for the quarter that ended in Dec. 2014 is calculated as


Gross Margin % (Q: Dec. 2014 )=Gross Profit (Q: Dec. 2014 ) / Revenue (Q: Dec. 2014 )
=0 / 0.005
=(Revenue - Cost of Goods Sold) / Revenue
=(0.005 - 0) / 0.005
=N/A %

* 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.


Direct Nickel  (ASX:DIR) 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

Direct Nickel had a gross margin of N/A% for the quarter that ended in Dec. 2014 => No sustainable 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.


Direct Nickel Gross Margin % Related Terms

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Direct Nickel (ASX:DIR) Business Description

Traded in Other Exchanges
N/A
Address
Direct Nickel Ltd is incorporated and domiciled in Australia. The Company is engaged in the research and development of nickel processing technology within the Oceania region. The Company has operations in Sydney and Perth. It also operates in Indonesia through its subsidiary, PT Direct Nickel with offices in Jakarta and has a 50% interest in a laterite deposit in Papua New Guinea.

Direct Nickel (ASX:DIR) Headlines

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