Cangene (FRA:YGE) Gross Margin % : 36.67% (As of Oct. 2013)

Cangene Gross Margin % Chart

Cangene Annual Data
	Trend	Jul04	Jul05	Jul06	Jul07	Jul08	Jul09	Jul10	Jul11	Jul12	Jul13
Gross Margin %		Get a 7-Day Free Trial					50.23	37.07	35.87	23.11	41.07

Cangene Quarterly Data
	Jan09	Apr09	Jul09	Oct09	Jan10	Apr10	Jul10	Oct10	Jan11	Apr11	Jul11	Oct11	Jan12	Apr12	Jul12	Oct12	Jan13	Apr13	Jul13	Oct13
Gross Margin %	Get a 7-Day Free Trial															38.79	30.86	54.94	33.11	36.67

Competitive Comparison of Cangene's Gross Margin %

For the Biotechnology subindustry, Cangene'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.

Cangene's Gross Margin % Distribution in the Biotechnology Industry

For the Biotechnology industry and Healthcare sector, Cangene's Gross Margin % distribution charts can be found below:

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

Cangene Gross Margin % Calculation

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

Cangene's Gross Margin for the fiscal year that ended in Jul. 2013 is calculated as

Cangene's Gross Margin for the quarter that ended in Oct. 2013 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.

Cangene  (FRA:YGE) 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

Cangene had a gross margin of 36.67% for the quarter that ended in Oct. 2013 => Competition eroding margins

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.

Cangene Gross Margin % Related Terms

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Cangene (FRA:YGE) Business Description