Chilco River Holdings (Chilco River Holdings) Gross Margin % : 57.82% (As of Dec. 2006)

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What is Chilco River Holdings Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Chilco River Holdings's Gross Profit for the six months ended in Dec. 2006 was $0.92 Mil. Chilco River Holdings's Revenue for the six months ended in Dec. 2006 was $1.60 Mil. Therefore, Chilco River Holdings's Gross Margin % for the quarter that ended in Dec. 2006 was 57.82%.

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

CRVH's Gross Margin % is not ranked ^*
in the Diversified Financial Services industry.
Industry Median: 45.39
* Ranked among companies with meaningful Gross Margin % only.

Chilco River Holdings had a gross margin of 57.82% for the quarter that ended in Dec. 2006 => Durable competitive advantage

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

Chilco River Holdings Gross Margin % Historical Data

The historical data trend for Chilco River 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.

Chilco River Holdings Gross Margin % Chart

Chilco River Holdings Annual Data

Trend

Dec04

Dec05

Dec06

Gross Margin %

86.08

74.66

57.82

Chilco River Holdings Semi-Annual Data
	Dec04	Dec05	Dec06
Gross Margin %	86.08	74.66	57.82

Competitive Comparison of Chilco River Holdings's Gross Margin %

For the Shell Companies subindustry, Chilco River 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.

Chilco River Holdings's Gross Margin % Distribution in the Diversified Financial Services Industry

For the Diversified Financial Services industry and Financial Services sector, Chilco River Holdings's Gross Margin % distribution charts can be found below:

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

Chilco River Holdings Gross Margin % Calculation

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

Chilco River Holdings's Gross Margin for the fiscal year that ended in Dec. 2006 is calculated as

Gross Margin % (A: Dec. 2006 )	=	Gross Profit (A: Dec. 2006 )	/	Revenue (A: Dec. 2006 )
	=	0.9	/	1.598
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(1.598 - 0.674)	/	1.598
	=	57.82 %

Chilco River Holdings's Gross Margin for the quarter that ended in Dec. 2006 is calculated as

Gross Margin % (Q: Dec. 2006 )	=	Gross Profit (Q: Dec. 2006 )	/	Revenue (Q: Dec. 2006 )
	=	0.9	/	1.598
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(1.598 - 0.674)	/	1.598
	=	57.82 %

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.

Chilco River Holdings (OTCPK:CRVH) 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

Chilco River Holdings had a gross margin of 57.82% for the quarter that ended in Dec. 2006 => 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.

Chilco River Holdings Gross Margin % Related Terms

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