Metro Global Media (Metro Global Media) Gross Margin % : 37.06% (As of Nov. 2001)

Metro Global Media Gross Margin % Chart

Metro Global Media Annual Data
	Trend	May92	May93	May94	May95	May96	May97	May98	May99	May00	May01
Gross Margin %		Get a 7-Day Free Trial					42.93	43.63	-31.28	35.14	33.20

Metro Global Media Quarterly Data
	Feb97	May97	Aug97	Nov97	Feb98	May98	Aug98	Nov98	Feb99	May99	Aug99	Nov99	Feb00	May00	Aug00	Nov00	Feb01	May01	Aug01	Nov01
Gross Margin %	Get a 7-Day Free Trial															36.99	33.45	25.48	36.48	37.06

Competitive Comparison of Metro Global Media's Gross Margin %

For the Entertainment subindustry, Metro Global Media'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.

Metro Global Media's Gross Margin % Distribution in the Media - Diversified Industry

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

* The bar in red indicates where Metro Global Media's Gross Margin % falls into.

Metro Global Media Gross Margin % Calculation

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

Metro Global Media's Gross Margin for the fiscal year that ended in May. 2001 is calculated as

Metro Global Media's Gross Margin for the quarter that ended in Nov. 2001 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.

Metro Global Media  (GREY:MGMA) 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

Metro Global Media had a gross margin of 37.06% for the quarter that ended in Nov. 2001 => 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.

Metro Global Media Gross Margin % Related Terms

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Metro Global Media (Metro Global Media) Business Description