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KonaRed (KonaRed) Gross Margin % : -17.89% (As of Dec. 2017)


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What is KonaRed Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. KonaRed's Gross Profit for the three months ended in Dec. 2017 was $-0.11 Mil. KonaRed's Revenue for the three months ended in Dec. 2017 was $0.59 Mil. Therefore, KonaRed's Gross Margin % for the quarter that ended in Dec. 2017 was -17.89%.


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


KRED's Gross Margin % is not ranked *
in the Beverages - Non-Alcoholic industry.
Industry Median: 37.44
* Ranked among companies with meaningful Gross Margin % only.

KonaRed had a gross margin of -17.89% for the quarter that ended in Dec. 2017 => No sustainable competitive advantage

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


KonaRed Gross Margin % Historical Data

The historical data trend for KonaRed'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.

KonaRed Gross Margin % Chart

KonaRed Annual Data
Trend May11 May12 May13 Dec14 Dec15 Dec16 Dec17
Gross Margin %
Get a 7-Day Free Trial - 12.76 30.19 30.03 18.62

KonaRed Quarterly Data
Feb13 May13 Aug13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17
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 61.48 32.71 24.50 55.66 -17.89

Competitive Comparison of KonaRed's Gross Margin %

For the Beverages - Non-Alcoholic subindustry, KonaRed'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.


KonaRed's Gross Margin % Distribution in the Beverages - Non-Alcoholic Industry

For the Beverages - Non-Alcoholic industry and Consumer Defensive sector, KonaRed's Gross Margin % distribution charts can be found below:

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



KonaRed Gross Margin % Calculation

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

KonaRed's Gross Margin for the fiscal year that ended in Dec. 2017 is calculated as

Gross Margin % (A: Dec. 2017 )=Gross Profit (A: Dec. 2017 ) / Revenue (A: Dec. 2017 )
=0.5 / 2.874
=(Revenue - Cost of Goods Sold) / Revenue
=(2.874 - 2.339) / 2.874
=18.62 %

KonaRed's Gross Margin for the quarter that ended in Dec. 2017 is calculated as


Gross Margin % (Q: Dec. 2017 )=Gross Profit (Q: Dec. 2017 ) / Revenue (Q: Dec. 2017 )
=-0.1 / 0.587
=(Revenue - Cost of Goods Sold) / Revenue
=(0.587 - 0.692) / 0.587
=-17.89 %

* 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.


KonaRed  (OTCPK:KRED) 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

KonaRed had a gross margin of -17.89% for the quarter that ended in Dec. 2017 => 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.


KonaRed Gross Margin % Related Terms

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KonaRed (KonaRed) Business Description

Traded in Other Exchanges
N/A
Address
2042 Corte Del Nogal, Suite 200, Carlsbad, CA, USA, 92011
KonaRed Corp is engaged in the business of distributing, marketing and selling of retail sale the food and beverage products based on the fruit of the coffee plant. Its products are coffee fruit wellness drink and KonaRed Antioxidant Juice. The company produces Ready to Drink 12oz Cold Brew Coffee varieties, Bag in the Box, Key Kegs, a complete line of whole bean and ground Kona Coffee Beans including RTD Antioxidant Juices and Hawaiian Coffee Fruit nutritional supplements. It also has an industrial ingredient supply division. Its products are sold throughout the US and can be found in select Vons, Albertsons, Publix, Pavilions, Costco, Ralphs, Fred Meyer, King Soopers, Smiths, Kroger, Safeway, Vitamin Shoppe, Target, Whole Foods, 7-Eleven, and many other retail outlets.

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