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Boise Inc (NYSE:BZ)
Gross Margin
19.41% (As of Jun. 2013)

Gross Margin is calculated as gross profit divided by its revenue. Boise Inc's gross profit for the three months ended in Jun. 2013 was $121 Mil. Boise Inc's revenue for the three months ended in Jun. 2013 was $622 Mil. Therefore, Boise Inc's Gross Margin for the quarter that ended in Jun. 2013 was 19.41%.

BZ' s 10-Year Gross Margin Range
Min: 0   Max: 0
Current: 0

BZ's Gross Marginis ranked lower than
100% of the Companies
in the Global Paper & Paper Products industry.

( Industry Median: vs. BZ: 0.00 )

Boise Inc had a gross margin of 19.41% for the quarter that ended in Jun. 2013 => No sustainable competitive advantage

The 3-Year average Growth Rate of Gross Margin for Boise Inc was 0.00% per year.


Definition

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

Boise Inc's Gross Margin for the fiscal year that ended in Dec. 2012 is calculated as

Gross Margin (A: Dec. 2012 )=Gross Profit (A: Dec. 2012 ) / Revenue (A: Dec. 2012 )
=531.5 / 2555.363
=(Revenue - Cost of Goods Sold) / Revenue
=(2555.363 - 2023.816) / 2555.363
=20.80 %

Boise Inc's Gross Margin for the quarter that ended in Jun. 2013 is calculated as

Gross Margin (Q: Jun. 2013 )=Gross Profit (Q: Jun. 2013 ) / Revenue (Q: Jun. 2013 )
=120.7 / 621.664
=(Revenue - Cost of Goods Sold) / Revenue
=(621.664 - 501.008) / 621.664
=19.41 %

* All numbers are in millions except for per share data and ratio. All numbers are in their own 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.


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

Boise Inc had a gross margin of 19.41% for the quarter that ended in Jun. 2013 => 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.


Related Terms

Operating Margin, Cost of Goods Sold, Gross Profit, Revenue


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Boise Inc Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12
Gross Margin 0.000.000.000.00100.0012.5217.4520.7521.0120.80

Boise Inc Quarterly Data

Mar11Jun11Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13
Gross Margin 20.2618.8622.6522.1521.3419.7621.2520.8517.2319.41
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