Electro Rent (Electro Rent) Gross Margin % : 73.21% (As of Feb. 2016)

Electro Rent Gross Margin % Chart

Electro Rent Annual Data
	Trend	May06	May07	May08	May09	May10	May11	May12	May13	May14	May15
Gross Margin %		Get a 7-Day Free Trial					57.74	57.53	60.33	61.41	58.19

Electro Rent Quarterly Data
	May11	Aug11	Nov11	Feb12	May12	Aug12	Nov12	Feb13	May13	Aug13	Nov13	Feb14	May14	Aug14	Nov14	Feb15	May15	Aug15	Nov15	Feb16
Gross Margin %	Get a 7-Day Free Trial															57.15	57.27	62.92	74.40	73.21

Competitive Comparison of Electro Rent's Gross Margin %

For the Rental & Leasing Services subindustry, Electro Rent'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.

Electro Rent's Gross Margin % Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, Electro Rent's Gross Margin % distribution charts can be found below:

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

Electro Rent Gross Margin % Calculation

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

Electro Rent's Gross Margin for the fiscal year that ended in May. 2015 is calculated as

Electro Rent's Gross Margin for the quarter that ended in Feb. 2016 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.

Electro Rent  (NAS:ELRC) 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

Electro Rent had a gross margin of 73.21% for the quarter that ended in Feb. 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.

Electro Rent Gross Margin % Related Terms

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Electro Rent (Electro Rent) Business Description