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Cowen Group Inc (NAS:COWN)
Gross Margin
100.00% (As of Sep. 2016)

Gross Margin is calculated as gross profit divided by its revenue. Cowen Group Inc's gross profit for the three months ended in Sep. 2016 was \$131.0 Mil. Cowen Group Inc's revenue for the three months ended in Sep. 2016 was \$131.0 Mil. Therefore, Cowen Group Inc's Gross Margin for the quarter that ended in Sep. 2016 was 100.00%.

COWN' s Gross Margin Range Over the Past 10 Years
Min: 100   Max: 100
Current: 100

During the past 13 years, the highest Gross Margin of Cowen Group Inc was 100.00%. The lowest was 100.00%. And the median was 100.00%.

COWN's Gross Margin is ranked higher than
94% of the 532 Companies
in the Global Capital Markets industry.

( Industry Median: 98.19 vs. COWN: 100.00 )

Cowen Group Inc had a gross margin of 100.00% for the quarter that ended in Sep. 2016 => Durable competitive advantage

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

Definition

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

Cowen Group Inc's Gross Margin for the fiscal year that ended in Dec. 2015 is calculated as

 Gross Margin (A: Dec. 2015 ) = Gross Profit (A: Dec. 2015 ) / Revenue (A: Dec. 2015 ) = 464.6 / 464.567 = (Revenue - Cost of Goods Sold) / Revenue = (464.567 - 0) / 464.567 = 100.00 %

Cowen Group Inc's Gross Margin for the quarter that ended in Sep. 2016 is calculated as

 Gross Margin (Q: Sep. 2016 ) = Gross Profit (Q: Sep. 2016 ) / Revenue (Q: Sep. 2016 ) = 131 / 131.027 = (Revenue - Cost of Goods Sold) / Revenue = (131.027 - 0) / 131.027 = 100.00 %

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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

Cowen Group Inc had a gross margin of 100.00% for the quarter that ended in Sep. 2016 => Durable 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

Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Cowen Group Inc Annual Data

 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Gross Margin 0.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

Cowen Group Inc Quarterly Data

 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Gross Margin 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
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