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Caldwell Partners International Inc (TSX:CWL)
Gross Margin
25.00% (As of May. 2014)

Gross Margin is calculated as gross profit divided by its revenue. Caldwell Partners International Inc's gross profit for the three months ended in May. 2014 was C$3.09 Mil. Caldwell Partners International Inc's revenue for the three months ended in May. 2014 was C$12.36 Mil. Therefore, Caldwell Partners International Inc's Gross Margin for the quarter that ended in May. 2014 was 25.00%.

Warning Sign:

Caldwell Partners International Inc gross margin has been in long term decline. The average rate of decline per year is -10.5%.

TSX:CWL' s 10-Year Gross Margin Range
Min: 7.73   Max: 100
Current: 25.37

7.73
100

During the past 13 years, the highest Gross Margin of Caldwell Partners International Inc was 100.00%. The lowest was 7.73%. And the median was 100.00%.

TSX:CWL's Gross Marginis ranked lower than
100% of the Companies
in the Global Staffing & Outsourcing Services industry.

( Industry Median: vs. TSX:CWL: 25.37 )

Caldwell Partners International Inc had a gross margin of 25.00% for the quarter that ended in May. 2014 => Competition eroding margins

The 3-Year average Growth Rate of Gross Margin for Caldwell Partners International Inc was -10.50% per year.


Definition

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

Caldwell Partners International Inc's Gross Margin for the fiscal year that ended in Aug. 2013 is calculated as

Gross Margin (A: Aug. 2013 )=Gross Profit (A: Aug. 2013 ) / Revenue (A: Aug. 2013 )
=7.8 / 33.803
=(Revenue - Cost of Goods Sold) / Revenue
=(33.803 - 26.005) / 33.803
=23.07 %

Caldwell Partners International Inc's Gross Margin for the quarter that ended in May. 2014 is calculated as

Gross Margin (Q: May. 2014 )=Gross Profit (Q: May. 2014 ) / Revenue (Q: May. 2014 )
=3.1 / 12.359
=(Revenue - Cost of Goods Sold) / Revenue
=(12.359 - 9.269) / 12.359
=25.00 %

* 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

Caldwell Partners International Inc had a gross margin of 25.00% for the quarter that ended in May. 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.

Caldwell Partners International Inc Annual Data

Aug04Aug05Aug06Aug07Aug08Aug09Aug10Aug11Aug12Aug13
Gross Margin 100.00100.00100.00100.00100.007.7322.9022.0324.8323.07

Caldwell Partners International Inc Quarterly Data

Feb12May12Aug12Nov12Feb13May13Aug13Nov13Feb14May14
Gross Margin 21.4127.7729.6024.2318.0222.1226.4224.9925.0925.00
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