Switch to:
Resource America Inc (NAS:REXI)
Gross Margin
25.52% (As of Jun. 2016)

Gross Margin is calculated as gross profit divided by its revenue. Resource America Inc's gross profit for the three months ended in Jun. 2016 was $6.7 Mil. Resource America Inc's revenue for the three months ended in Jun. 2016 was $26.1 Mil. Therefore, Resource America Inc's Gross Margin for the quarter that ended in Jun. 2016 was 25.52%.

Warning Sign:

Resource America Inc gross margin has been in long term decline. The average rate of decline per year is -5%.

REXI' s Gross Margin Range Over the Past 10 Years
Min: -4.68   Max: 71.23
Current: -4.68

-4.68
71.23

During the past 13 years, the highest Gross Margin of Resource America Inc was 71.23%. The lowest was -4.68%. And the median was 38.68%.

REXI's Gross Margin is ranked lower than
97% of the 1592 Companies
in the Global Real Estate Services industry.

( Industry Median: 41.76 vs. REXI: -4.68 )

Resource America Inc had a gross margin of 25.52% for the quarter that ended in Jun. 2016 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Resource America Inc was -5.00% per year.


Definition

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

Resource America 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 )
=36.9 / 99.855
=(Revenue - Cost of Goods Sold) / Revenue
=(99.855 - 62.966) / 99.855
=36.94 %

Resource America Inc's Gross Margin for the quarter that ended in Jun. 2016 is calculated as

Gross Margin (Q: Jun. 2016 )=Gross Profit (Q: Jun. 2016 ) / Revenue (Q: Jun. 2016 )
=6.7 / 26.139
=(Revenue - Cost of Goods Sold) / Revenue
=(26.139 - 19.469) / 26.139
=25.52 %

* 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

Resource America Inc had a gross margin of 25.52% for the quarter that ended in Jun. 2016 => 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.


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 local exchange's currency.

Resource America Inc Annual Data

Sep06Sep07Sep08Sep09Sep10Sep11Sep12Dec13Dec14Dec15
Gross Margin 49.5057.4440.3137.0532.4163.9271.2333.6336.4236.94

Resource America Inc Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
Gross Margin 68.6371.6470.31136.5836.4942.1763.06159.2241.8925.52
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK