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Indesit Co (Indesit Co) Gross Margin % : 24.11% (As of Sep. 2014)


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What is Indesit Co Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Indesit Co's Gross Profit for the three months ended in Sep. 2014 was $217.78 Mil. Indesit Co's Revenue for the three months ended in Sep. 2014 was $903.22 Mil. Therefore, Indesit Co's Gross Margin % for the quarter that ended in Sep. 2014 was 24.11%.


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

IDESY' s Gross Margin % Range Over the Past 10 Years
Min: 23.07   Med: 26.5   Max: 31.66
Current: 23.64


During the past 13 years, the highest Gross Margin % of Indesit Co was 31.66%. The lowest was 23.07%. And the median was 26.50%.

IDESY's Gross Margin % is not ranked
in the Hardware industry.
Industry Median: 24.395 vs IDESY: 23.64

Indesit Co had a gross margin of 24.11% for the quarter that ended in Sep. 2014 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Indesit Co was -0.70% per year.


Indesit Co Gross Margin % Historical Data

The historical data trend for Indesit Co'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.

Indesit Co Gross Margin % Chart

Indesit Co Annual Data
Trend Dec04 Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 24.44 27.68 25.73 24.66 23.07

Indesit Co Quarterly Data
Dec09 Mar10 Jun10 Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14
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 23.68 21.59 23.78 25.28 24.11

Competitive Comparison of Indesit Co's Gross Margin %

For the Consumer Electronics subindustry, Indesit Co'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.


Indesit Co's Gross Margin % Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Indesit Co's Gross Margin % distribution charts can be found below:

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



Indesit Co Gross Margin % Calculation

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

Indesit Co's Gross Margin for the fiscal year that ended in Dec. 2013 is calculated as

Gross Margin % (A: Dec. 2013 )=Gross Profit (A: Dec. 2013 ) / Revenue (A: Dec. 2013 )
=844.2 / 3659.041
=(Revenue - Cost of Goods Sold) / Revenue
=(3659.041 - 2814.794) / 3659.041
=23.07 %

Indesit Co's Gross Margin for the quarter that ended in Sep. 2014 is calculated as


Gross Margin % (Q: Sep. 2014 )=Gross Profit (Q: Sep. 2014 ) / Revenue (Q: Sep. 2014 )
=217.8 / 903.222
=(Revenue - Cost of Goods Sold) / Revenue
=(903.222 - 685.438) / 903.222
=24.11 %

* 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.


Indesit Co  (OTCPK:IDESY) 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

Indesit Co had a gross margin of 24.11% for the quarter that ended in Sep. 2014 => 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.


Indesit Co Gross Margin % Related Terms

Thank you for viewing the detailed overview of Indesit Co's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Indesit Co (Indesit Co) Business Description

Traded in Other Exchanges
N/A
Address
Indesit Co is founded in 1975. The Company is engaged in the production and distribution of appliances such as washing machines, dryers, dishwashers, fridges, freezers, cookers, hoods, ovens and hobs. The Company's geographical segments are Western Europe, Eastern Europe and International. It operates mainly in Italy, Poland, the UK, Russia and Turkey. Its main brands are Indesit, Hotpoint and Scholtès. The Company is subject to various national and international laws and regulations.

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