Mothercare Australia Limited (ASX:MLC) Gross Margin % : 31.79% (As of Jun. 2012)

Mothercare Australia Limited Gross Margin % Chart

Mothercare Australia Limited Annual Data
	Trend	Dec02	Dec03	Dec04	Dec05	Dec06	Dec07	Jun09	Jun10	Jun11	Jun12
Gross Margin %		Get a 7-Day Free Trial					44.06	41.37	51.57	-	40.33

Mothercare Australia Limited Semi-Annual Data
	Dec02	Jun03	Dec03	Jun04	Dec04	Jun05	Dec05	Jun06	Dec06	Jun07	Dec07	Jun08	Dec08	Jun09	Dec09	Jun10	Dec10	Jun11	Dec11	Jun12
Gross Margin %	Get a 7-Day Free Trial															51.78	-	-	47.43	31.79

Competitive Comparison of Mothercare Australia Limited's Gross Margin %

For the Specialty Retail subindustry, Mothercare Australia Limited'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.

Mothercare Australia Limited's Gross Margin % Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Mothercare Australia Limited's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Mothercare Australia Limited's Gross Margin % falls into.

Mothercare Australia Limited Gross Margin % Calculation

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

Mothercare Australia Limited's Gross Margin for the fiscal year that ended in Jun. 2012 is calculated as

Mothercare Australia Limited's Gross Margin for the quarter that ended in Jun. 2012 is calculated as

* 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.

Mothercare Australia Limited  (ASX:MLC) 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

Mothercare Australia Limited had a gross margin of 31.79% for the quarter that ended in Jun. 2012 => 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.

Mothercare Australia Limited Gross Margin % Related Terms

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Mothercare Australia Limited (ASX:MLC) Business Description