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Gate Ventures (LSE:GATE) Gross Margin % : -176.79% (As of Dec. 2018)


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What is Gate Ventures Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Gate Ventures's Gross Profit for the six months ended in Dec. 2018 was £-0.10 Mil. Gate Ventures's Revenue for the six months ended in Dec. 2018 was £0.06 Mil. Therefore, Gate Ventures's Gross Margin % for the quarter that ended in Dec. 2018 was -176.79%.


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

LSE:GATE' s Gross Margin % Range Over the Past 10 Years
Min: -68.04   Med: 151.1   Max: 151.1
Current: -68.04

During the past 3 years, the highest Gross Margin % of Gate Ventures was 151.10%. The lowest was -68.04%. And the median was 151.10%.

LSE:GATE's Gross Margin % is not ranked
in the Media - Diversified industry.
Industry Median: 38.52 vs LSE:GATE: -68.04

Gate Ventures had a gross margin of -176.79% for the quarter that ended in Dec. 2018 => No sustainable competitive advantage

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

Gate Ventures Gross Margin % Historical Data

The historical data trend for Gate Ventures'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.

Gate Ventures Gross Margin % Chart

Gate Ventures Annual Data
Trend Jun16 Jun17 Jun18
Gross Margin %
- 46.77 17.01

Gate Ventures Semi-Annual Data
Dec15 Dec16 Jun17 Dec17 Jun18 Dec18
Gross Margin % Get a 7-Day Free Trial 64.10 41.18 72.65 165.52 -176.79

Competitive Comparison of Gate Ventures's Gross Margin %

For the Entertainment subindustry, Gate Ventures'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.

Gate Ventures's Gross Margin % Distribution in the Media - Diversified Industry

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

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


Gate Ventures Gross Margin % Calculation

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

Gate Ventures's Gross Margin for the fiscal year that ended in Jun. 2018 is calculated as

Gross Margin % (A: Jun. 2018 )=Gross Profit (A: Jun. 2018 ) / Revenue (A: Jun. 2018 )
=0 / 0.147
=(Revenue - Cost of Goods Sold) / Revenue
=(0.147 - 0.122) / 0.147
=17.01 %

Gate Ventures's Gross Margin for the quarter that ended in Dec. 2018 is calculated as


Gross Margin % (Q: Dec. 2018 )=Gross Profit (Q: Dec. 2018 ) / Revenue (Q: Dec. 2018 )
=-0.1 / 0.056
=(Revenue - Cost of Goods Sold) / Revenue
=(0.056 - 0.155) / 0.056
=-176.79 %

* 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.

Gate Ventures  (LSE:GATE) 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

Gate Ventures had a gross margin of -176.79% for the quarter that ended in Dec. 2018 => 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.

Gate Ventures Gross Margin % Related Terms

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Gate Ventures (LSE:GATE) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » Gate Ventures PLC (LSE:GATE) » Definitions » Gross Margin %
Comparable Companies
BOM:532382 LIVX XMCE:VOC MIL:MTV LSE:EMAN NSE:SHEMAROO XKRX:160550 ISX:BLTZ XKRX:206560 HKSE:08228 XSWX:HLEE HKSE:01132 FUSZ LSE:EVRH XTER:PAL ROCO:4803 HKSE:08172 BOM:532163 XKRX:054780 ASX:BIG
Traded in Other Exchanges
N/A
Address
5th Floor, 17 Old Park Lane, London, GBR, W1K 1QT
Website
http://www.gateplc.com
Gate Ventures PLC is an investing company. It makes investments and capitalizes on investment opportunities in the Media and entertainment sector, focusing on theatre television, media technology, and e-commerce.