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Terravia Holdings (FRA:S7Y) Gross Margin % : 72.36% (As of Mar. 2017)


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What is Terravia Holdings Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Terravia Holdings's Gross Profit for the three months ended in Mar. 2017 was €3.06 Mil. Terravia Holdings's Revenue for the three months ended in Mar. 2017 was €4.23 Mil. Therefore, Terravia Holdings's Gross Margin % for the quarter that ended in Mar. 2017 was 72.36%.


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


FRA:S7Y's Gross Margin % is not ranked *
in the Chemicals industry.
Industry Median: 22.38
* Ranked among companies with meaningful Gross Margin % only.

Terravia Holdings had a gross margin of 72.36% for the quarter that ended in Mar. 2017 => Durable competitive advantage

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


Terravia Holdings Gross Margin % Historical Data

The historical data trend for Terravia 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.

Terravia Holdings Gross Margin % Chart

Terravia Holdings Annual Data
Trend Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16
Gross Margin %
Get a 7-Day Free Trial 87.96 83.94 64.22 53.78 71.56

Terravia Holdings Quarterly Data
Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17
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 73.32 72.61 79.51 54.13 72.36

Competitive Comparison of Terravia Holdings's Gross Margin %

For the Specialty Chemicals subindustry, Terravia 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.


Terravia Holdings's Gross Margin % Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Terravia Holdings's Gross Margin % distribution charts can be found below:

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



Terravia Holdings Gross Margin % Calculation

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

Terravia Holdings's Gross Margin for the fiscal year that ended in Dec. 2016 is calculated as

Gross Margin % (A: Dec. 2016 )=Gross Profit (A: Dec. 2016 ) / Revenue (A: Dec. 2016 )
=12.5 / 17.521
=(Revenue - Cost of Goods Sold) / Revenue
=(17.521 - 4.983) / 17.521
=71.56 %

Terravia Holdings's Gross Margin for the quarter that ended in Mar. 2017 is calculated as


Gross Margin % (Q: Mar. 2017 )=Gross Profit (Q: Mar. 2017 ) / Revenue (Q: Mar. 2017 )
=3.1 / 4.225
=(Revenue - Cost of Goods Sold) / Revenue
=(4.225 - 1.168) / 4.225
=72.36 %

* 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.


Terravia Holdings  (FRA:S7Y) 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

Terravia Holdings had a gross margin of 72.36% 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.


Terravia Holdings Gross Margin % Related Terms

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Terravia Holdings (FRA:S7Y) Business Description

Traded in Other Exchanges
N/A
Address
TerraVia Holdings Inc along with its subsidiaries, is engaged in providing renewable oils and other bioproducts. It commercializes its products into target markets such as chemicals and fuels, nutrition, and skin and personal care.

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