Bally Total Fitness Holding (Bally Total Fitness Holding) Gross Margin % : 30.38% (As of Jun. 2007)

Bally Total Fitness Holding Gross Margin % Chart

Bally Total Fitness Holding Annual Data
	Trend	Dec97	Dec98	Dec99	Dec00	Dec01	Dec02	Dec03	Dec04	Dec05	Dec06
Gross Margin %		Get a 7-Day Free Trial					11.02	9.98	25.79	28.66	33.75

Bally Total Fitness Holding Quarterly Data
	Sep02	Dec02	Mar03	Jun03	Sep03	Dec03	Mar04	Jun04	Sep04	Dec04	Mar05	Jun05	Sep05	Dec05	Mar06	Jun06	Sep06	Dec06	Mar07	Jun07
Gross Margin %	Get a 7-Day Free Trial															29.64	28.12	46.58	26.65	30.38

Competitive Comparison of Bally Total Fitness Holding's Gross Margin %

For the Leisure subindustry, Bally Total Fitness Holding'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.

Bally Total Fitness Holding's Gross Margin % Distribution in the Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, Bally Total Fitness Holding's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Bally Total Fitness Holding's Gross Margin % falls into.

Bally Total Fitness Holding Gross Margin % Calculation

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

Bally Total Fitness Holding's Gross Margin for the fiscal year that ended in Dec. 2006 is calculated as

Bally Total Fitness Holding's Gross Margin for the quarter that ended in Jun. 2007 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.

Bally Total Fitness Holding  (GREY:BLLYW) 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

Bally Total Fitness Holding had a gross margin of 30.38% for the quarter that ended in Jun. 2007 => 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.

Bally Total Fitness Holding Gross Margin % Related Terms

Thank you for viewing the detailed overview of Bally Total Fitness Holding's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.

Bally Total Fitness Holding (Bally Total Fitness Holding) Business Description