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Bona Film Group (Bona Film Group) Gross Margin % : 51.26% (As of Sep. 2015)


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What is Bona Film Group Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Bona Film Group's Gross Profit for the three months ended in Sep. 2015 was $40.5 Mil. Bona Film Group's Revenue for the three months ended in Sep. 2015 was $78.9 Mil. Therefore, Bona Film Group's Gross Margin % for the quarter that ended in Sep. 2015 was 51.26%.


The historical rank and industry rank for Bona Film Group's Gross Margin % or its related term are showing as below:


BONA's Gross Margin % is not ranked *
in the Media - Diversified industry.
Industry Median: 38.36
* Ranked among companies with meaningful Gross Margin % only.

Bona Film Group had a gross margin of 51.26% for the quarter that ended in Sep. 2015 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Bona Film Group was 0.00% per year.


Bona Film Group Gross Margin % Historical Data

The historical data trend for Bona Film Group'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.

Bona Film Group Gross Margin % Chart

Bona Film Group Annual Data
Trend Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14
Gross Margin %
Get a 7-Day Free Trial 49.83 47.32 39.50 44.53 44.39

Bona Film Group Quarterly Data
Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 40.88 48.18 38.29 47.68 51.26

Competitive Comparison of Bona Film Group's Gross Margin %

For the Broadcasting subindustry, Bona Film Group'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.


Bona Film Group's Gross Margin % Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Bona Film Group's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Bona Film Group's Gross Margin % falls into.



Bona Film Group Gross Margin % Calculation

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

Bona Film Group's Gross Margin for the fiscal year that ended in Dec. 2014 is calculated as

Gross Margin % (A: Dec. 2014 )=Gross Profit (A: Dec. 2014 ) / Revenue (A: Dec. 2014 )
=112.8 / 254.086
=(Revenue - Cost of Goods Sold) / Revenue
=(254.086 - 141.298) / 254.086
=44.39 %

Bona Film Group's Gross Margin for the quarter that ended in Sep. 2015 is calculated as


Gross Margin % (Q: Sep. 2015 )=Gross Profit (Q: Sep. 2015 ) / Revenue (Q: Sep. 2015 )
=40.5 / 78.918
=(Revenue - Cost of Goods Sold) / Revenue
=(78.918 - 38.463) / 78.918
=51.26 %

* 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.


Bona Film Group  (NAS:BONA) 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

Bona Film Group had a gross margin of 51.26% for the quarter that ended in Sep. 2015 => 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.


Bona Film Group Gross Margin % Related Terms

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Bona Film Group (Bona Film Group) Business Description

Traded in Other Exchanges
N/A
Address
Bona Film Group Ltd is incorporated in the Cayman Islands on July 8, 2010. On December 14, 2010, it completed its initial public offering. The Company operates as a film distributor in China. It distributes films through virtually all of the theater circuits in China. It has distribution rights to a selection of films through joint distribution arrangements with industry participants such as the state-owned China Film Group Corporation. It has distributed 39 Chinese films (including Hong Kong films) internationally. In addition to film distribution and film and television production operations, it owns and operates 21 movie theaters in commercial districts and residential areas in several major cities in China. The Company's film distribution activities consist of film sourcing, which includes identifying quality film projects with commercial potential and securing film distribution rights; print and marketing, which includes coordinating the distribution of film prints to theater circuits, as well as conducting marketing and publicity campaigns to promote the films to their target audiences; exhibition, which includes negotiating the terms of exhibitions of films in domestic and international movie theaters as well as through non-theatrical distribution channels and film advertising, which includes the sale of approximately three minutes advertising time immediately prior to the start of the theatrical screening of a film, in-film product placements and cross-promotion campaigns. The Company faces competition for audiences from companies within the entertainment business and from alternative forms of leisure entertainment, such as sporting events, outdoor recreation, video games, the Internet and other cultural and computer-related activities. Its competitors in film distribution and production include state-owned enterprises such as China Film Group and non state-owned companies such as Huayi Brothers. Its trademark includes "Bona". Its talent agency business is subject to various PRC laws, rules and regulations.

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