Earthworks Entertainment (Earthworks Entertainment) Gross Margin % : 0.00% (As of Jun. 2006)

Earthworks Entertainment Gross Margin % Chart

Earthworks Entertainment Annual Data
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Earthworks Entertainment Quarterly Data
	Sep01	Dec01	Mar02	Jun02	Sep02	Dec02	Mar03	Jun03	Sep03	Dec03	Mar04	Jun04	Sep04	Dec04	Mar05	Jun05	Sep05	Dec05	Mar06	Jun06
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Competitive Comparison of Earthworks Entertainment's Gross Margin %

For the Entertainment subindustry, Earthworks Entertainment'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.

Earthworks Entertainment's Gross Margin % Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Earthworks Entertainment's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Earthworks Entertainment's Gross Margin % falls into.

Earthworks Entertainment 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.)

Earthworks Entertainment's Gross Margin for the fiscal year that ended in Sep. 2005 is calculated as

Earthworks Entertainment's Gross Margin for the quarter that ended in Jun. 2006 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.

Earthworks Entertainment  (OTCPK:EWKS) 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

Earthworks Entertainment had a gross margin of N/A% for the quarter that ended in Jun. 2006 => 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.

Earthworks Entertainment Gross Margin % Related Terms

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Earthworks Entertainment (Earthworks Entertainment) Business Description