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Thinkpath (Thinkpath) Gross Margin % : 34.92% (As of Sep. 2007)


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What is Thinkpath Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Thinkpath's Gross Profit for the three months ended in Sep. 2007 was $1.28 Mil. Thinkpath's Revenue for the three months ended in Sep. 2007 was $3.67 Mil. Therefore, Thinkpath's Gross Margin % for the quarter that ended in Sep. 2007 was 34.92%.


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


THPHF's Gross Margin % is not ranked *
in the Construction industry.
Industry Median: 19.14
* Ranked among companies with meaningful Gross Margin % only.

Thinkpath had a gross margin of 34.92% for the quarter that ended in Sep. 2007 => Competition eroding margins

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


Thinkpath Gross Margin % Historical Data

The historical data trend for Thinkpath'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.

Thinkpath Gross Margin % Chart

Thinkpath Annual Data
Trend Dec97 Dec98 Dec99 Dec00 Dec01 Dec02 Dec03 Dec04 Dec05 Dec06
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 22.35 32.11 35.53 31.83 31.72

Thinkpath Quarterly Data
Dec02 Mar03 Jun03 Sep03 Dec03 Mar04 Jun04 Sep04 Dec04 Mar05 Jun05 Sep05 Dec05 Mar06 Jun06 Sep06 Dec06 Mar07 Jun07 Sep07
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 33.30 32.57 35.54 35.90 34.92

Competitive Comparison of Thinkpath's Gross Margin %

For the Engineering & Construction subindustry, Thinkpath'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.


Thinkpath's Gross Margin % Distribution in the Construction Industry

For the Construction industry and Industrials sector, Thinkpath's Gross Margin % distribution charts can be found below:

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



Thinkpath Gross Margin % Calculation

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

Thinkpath's Gross Margin for the fiscal year that ended in Dec. 2006 is calculated as

Gross Margin % (A: Dec. 2006 )=Gross Profit (A: Dec. 2006 ) / Revenue (A: Dec. 2006 )
=4.3 / 13.504
=(Revenue - Cost of Goods Sold) / Revenue
=(13.504 - 9.22) / 13.504
=31.72 %

Thinkpath's Gross Margin for the quarter that ended in Sep. 2007 is calculated as


Gross Margin % (Q: Sep. 2007 )=Gross Profit (Q: Sep. 2007 ) / Revenue (Q: Sep. 2007 )
=1.3 / 3.668
=(Revenue - Cost of Goods Sold) / Revenue
=(3.668 - 2.387) / 3.668
=34.92 %

* 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.


Thinkpath  (GREY:THPHF) 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

Thinkpath had a gross margin of 34.92% for the quarter that ended in Sep. 2007 => 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.


Thinkpath Gross Margin % Related Terms

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Thinkpath (Thinkpath) Business Description

Traded in Other Exchanges
N/A
Address
365 Evans Avenue, Suite 602, Toronto, ON, CAN, M8Z 1K2
Thinkpath Inc provides customized engineering solutions with a wide range of support services guaranteeing timely, efficient and cost-effective completion of projects in numerous and varied industries. The company's customized solutions include Engineering & Design Services, Technical Publishing & Documentation and On-site Engineering Support.

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