Metal Storm Limited (ASX:MST) Gross Margin % : 97.50% (As of Dec. 2011)

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What is Metal Storm Limited Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Metal Storm Limited's Gross Profit for the six months ended in Dec. 2011 was A$1.29 Mil. Metal Storm Limited's Revenue for the six months ended in Dec. 2011 was A$1.32 Mil. Therefore, Metal Storm Limited's Gross Margin % for the quarter that ended in Dec. 2011 was 97.50%.

The historical rank and industry rank for Metal Storm Limited's Gross Margin % or its related term are showing as below:

ASX:MST's Gross Margin % is not ranked ^*
in the Aerospace & Defense industry.
Industry Median: 26.04
* Ranked among companies with meaningful Gross Margin % only.

Metal Storm Limited had a gross margin of 97.50% for the quarter that ended in Dec. 2011 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Metal Storm Limited was 0.00% per year.

Metal Storm Limited Gross Margin % Historical Data

The historical data trend for Metal Storm Limited'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.

* Premium members only.

Metal Storm Limited Gross Margin % Chart

Metal Storm Limited Annual Data

Trend

Dec02

Dec03

Dec04

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Gross Margin %

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-257.04

94.00

86.15

78.00

97.50

Metal Storm Limited Semi-Annual Data
	Dec00	Dec01	Dec02	Dec03	Dec04	Dec05	Dec06	Dec07	Dec08	Dec09	Dec10	Dec11
Gross Margin %	Get a 7-Day Free Trial							-257.04	94.00	86.15	78.00	97.50

Competitive Comparison of Metal Storm Limited's Gross Margin %

For the Aerospace & Defense subindustry, Metal Storm 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.

Metal Storm Limited's Gross Margin % Distribution in the Aerospace & Defense Industry

For the Aerospace & Defense industry and Industrials sector, Metal Storm Limited's Gross Margin % distribution charts can be found below:

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

Metal Storm Limited Gross Margin % Calculation

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

Metal Storm Limited's Gross Margin for the fiscal year that ended in Dec. 2011 is calculated as

Gross Margin % (A: Dec. 2011 )	=	Gross Profit (A: Dec. 2011 )	/	Revenue (A: Dec. 2011 )
	=	1.3	/	1.318
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(1.318 - 0.033)	/	1.318
	=	97.50 %

Metal Storm Limited's Gross Margin for the quarter that ended in Dec. 2011 is calculated as

Gross Margin % (Q: Dec. 2011 )	=	Gross Profit (Q: Dec. 2011 )	/	Revenue (Q: Dec. 2011 )
	=	1.3	/	1.318
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(1.318 - 0.033)	/	1.318
	=	97.50 %

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.

Metal Storm Limited (ASX:MST) 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

Metal Storm Limited had a gross margin of 97.50% for the quarter that ended in Dec. 2011 => Durable competitive advantage

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.

Metal Storm Limited Gross Margin % Related Terms

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Metal Storm Limited Business Description

Industry

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Address

Website

http://www.metalstorm.com

Metal Storm Ltd is incorporated under the laws of Australia on April 13, 1994. The company is a defence technology company engaged in the development of electronically initiated ballistics systems using its stacked round technology. Its technology is an electronically initiated, stacked projectile system which removes the mechanical steps required to fire a conventional weapon. Effectively, the only parts that move in Metal Storm's technology are the projectiles contained within the barrels. Multiple projectiles are stacked in a barrel, each separated by a propellant load. Its products include 3GL - 3 shot grenade launcher, FireStorm, MAUL, Redback, Munitions and Component weapon systems. The company also provides Research and Development as well as Consulting and Integration Services.