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Badger Paper Mills (Badger Paper Mills) Gross Margin % : -2.81% (As of Jun. 2005)


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What is Badger Paper Mills Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Badger Paper Mills's Gross Profit for the three months ended in Jun. 2005 was $-0.45 Mil. Badger Paper Mills's Revenue for the three months ended in Jun. 2005 was $16.09 Mil. Therefore, Badger Paper Mills's Gross Margin % for the quarter that ended in Jun. 2005 was -2.81%.


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


BPMI's Gross Margin % is not ranked *
in the Forest Products industry.
Industry Median: 19.94
* Ranked among companies with meaningful Gross Margin % only.

Badger Paper Mills had a gross margin of -2.81% for the quarter that ended in Jun. 2005 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Badger Paper Mills was 0.00% per year.


Badger Paper Mills Gross Margin % Historical Data

The historical data trend for Badger Paper Mills'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.

Badger Paper Mills Gross Margin % Chart

Badger Paper Mills Annual Data
Trend Dec95 Dec96 Dec97 Dec98 Dec99 Dec00 Dec01 Dec02 Dec03 Dec04
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.53 12.90 10.61 1.70 3.83

Badger Paper Mills Quarterly Data
Sep00 Dec00 Mar01 Jun01 Sep01 Dec01 Mar02 Jun02 Sep02 Dec02 Mar03 Jun03 Sep03 Dec03 Mar04 Jun04 Sep04 Dec04 Mar05 Jun05
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 -1.37 6.95 5.62 2.68 -2.81

Competitive Comparison of Badger Paper Mills's Gross Margin %

For the Paper & Paper Products subindustry, Badger Paper Mills'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.


Badger Paper Mills's Gross Margin % Distribution in the Forest Products Industry

For the Forest Products industry and Basic Materials sector, Badger Paper Mills's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Badger Paper Mills's Gross Margin % falls into.



Badger Paper Mills Gross Margin % Calculation

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

Badger Paper Mills's Gross Margin for the fiscal year that ended in Dec. 2004 is calculated as

Gross Margin % (A: Dec. 2004 )=Gross Profit (A: Dec. 2004 ) / Revenue (A: Dec. 2004 )
=2.8 / 73.109
=(Revenue - Cost of Goods Sold) / Revenue
=(73.109 - 70.309) / 73.109
=3.83 %

Badger Paper Mills's Gross Margin for the quarter that ended in Jun. 2005 is calculated as


Gross Margin % (Q: Jun. 2005 )=Gross Profit (Q: Jun. 2005 ) / Revenue (Q: Jun. 2005 )
=-0.5 / 16.093
=(Revenue - Cost of Goods Sold) / Revenue
=(16.093 - 16.545) / 16.093
=-2.81 %

* 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.


Badger Paper Mills  (OTCPK:BPMI) 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

Badger Paper Mills had a gross margin of -2.81% for the quarter that ended in Jun. 2005 => 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.


Badger Paper Mills Gross Margin % Related Terms

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Badger Paper Mills (Badger Paper Mills) Business Description

Traded in Other Exchanges
N/A
Address
200 West Front Street, P.O. Box 149, Peshtigo, WI, USA, 54157
Badger Paper Mills Inc manufactures specialty papers and converted materials for the flexible packaging, confectionery, and food service industries. It offers full-service toll printing and in-house capabilities to add a coating to flexible packaging products.
Executives
Mark D Burish director HURLEY, BURISH, MILLIKEN S.C., 301 NORTH BROOM STREET, MADISON WI 53703

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