Gross Margin % is calculated as gross profit divided by its revenue. RPX's Gross Profit for the
three
months ended in Mar. 2018 was $24.9 Mil. RPX's Revenue for the
three
months ended in Mar. 2018 was $67.1 Mil. Therefore, RPX's Gross Margin % for the quarter that ended in Mar. 2018 was 37.08%.
The historical rank and industry rank for RPX's Gross Margin % or its related term are showing as below:
RPXC's Gross Margin % is not ranked *
in the Business Services industry.
Industry Median: 34.8 * Ranked among companies with meaningful Gross Margin % only.
RPX had a gross margin of 37.08% for the quarter that ended in Mar. 2018 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for RPX was 0.00% per year.
RPX Gross Margin % Historical Data
The historical data trend for RPX'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.
For the Specialty Business Services subindustry, RPX'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.
RPX's Gross Margin % Distribution in the Business Services Industry
For the Business Services industry and Industrials sector, RPX's Gross Margin % distribution charts can be found below:
* The bar in red indicates where RPX's Gross Margin % falls into.
* 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.
RPX (NAS:RPXC) 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
RPX had a gross margin of 37.08% for the quarter that ended in Mar. 2018 => 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.
RPX Gross Margin % Related Terms
Thank you for viewing the detailed overview of RPX's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
RPX Corp is a U.S.-based company that offers patent aggregation solutions. The company acquires patents and licenses to patents that are already or can possibly be asserted against the company's existing and potential clients, and after that, the company licenses these patents to clients, in a bid to help clients reduce patent litigation risks, obtain cost-effective licenses, and control patent-risk management costs. The firm's revenue primarily stems from the subscription fees paid by clients under agreement, the premiums earned from insurance policies, and management fees. The company generates most of its revenue from the United States, Japan, and Korea.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
RPXC has been successfully added to your 