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Radiant Logistics Inc (AMEX:RLGT)
Gross Margin
26.80% (As of Sep. 2014)

Gross Margin is calculated as gross profit divided by its revenue. Radiant Logistics Inc's gross profit for the three months ended in Sep. 2014 was $26.3 Mil. Radiant Logistics Inc's revenue for the three months ended in Sep. 2014 was $98.2 Mil. Therefore, Radiant Logistics Inc's Gross Margin for the quarter that ended in Sep. 2014 was 26.80%.

Warning Sign:

Radiant Logistics Inc gross margin has been in long term decline. The average rate of decline per year is -3.2%.

RLGT' s 10-Year Gross Margin Range
Min: 0.04   Max: 35.37
Current: 27.61

0.04
35.37

During the past 10 years, the highest Gross Margin of Radiant Logistics Inc was 35.37%. The lowest was 0.04%. And the median was 29.60%.

RLGT's Gross Marginis ranked lower than
100% of the Companies
in the Global Integrated Shipping & Logistics industry.

( Industry Median: vs. RLGT: 27.61 )

Radiant Logistics Inc had a gross margin of 26.80% for the quarter that ended in Sep. 2014 => Competition eroding margins

The 3-Year average Growth Rate of Gross Margin for Radiant Logistics Inc was -3.20% per year.


Definition

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

Radiant Logistics Inc's Gross Margin for the fiscal year that ended in Jun. 2014 is calculated as

Gross Margin (A: Jun. 2014 )=Gross Profit (A: Jun. 2014 ) / Revenue (A: Jun. 2014 )
=99.2 / 349.133
=(Revenue - Cost of Goods Sold) / Revenue
=(349.133 - 249.898) / 349.133
=28.42 %

Radiant Logistics Inc's Gross Margin for the quarter that ended in Sep. 2014 is calculated as

Gross Margin (Q: Sep. 2014 )=Gross Profit (Q: Sep. 2014 ) / Revenue (Q: Sep. 2014 )
=26.3 / 98.231
=(Revenue - Cost of Goods Sold) / Revenue
=(98.231 - 71.907) / 98.231
=26.80 %

* 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

Radiant Logistics Inc had a gross margin of 26.80% for the quarter that ended in Sep. 2014 => 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 own currency.

Radiant Logistics Inc Annual Data

Dec04Dec05Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14
Gross Margin 0.000.0035.370.0433.2631.1030.6728.5228.4528.42

Radiant Logistics Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
Gross Margin 28.0028.1027.5329.6828.5730.2728.9627.8827.0526.80
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