Circuit Research Labs (Circuit Research Labs) Gross Margin % : 56.59% (As of Sep. 2008)

Circuit Research Labs Gross Margin % Chart

Circuit Research Labs Annual Data
	Trend	Dec98	Dec99	Dec00	Dec01	Dec02	Dec03	Dec04	Dec05	Dec06	Dec07
Gross Margin %		Get a 7-Day Free Trial					55.28	54.38	57.73	54.25	55.20

Circuit Research Labs Quarterly Data
	Dec03	Mar04	Jun04	Sep04	Dec04	Mar05	Jun05	Sep05	Dec05	Mar06	Jun06	Sep06	Dec06	Mar07	Jun07	Sep07	Dec07	Mar08	Jun08	Sep08
Gross Margin %	Get a 7-Day Free Trial															43.92	55.38	56.08	56.73	56.59

Competitive Comparison of Circuit Research Labs's Gross Margin %

For the Communication Equipment subindustry, Circuit Research Labs'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.

Circuit Research Labs's Gross Margin % Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Circuit Research Labs's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Circuit Research Labs's Gross Margin % falls into.

Circuit Research Labs Gross Margin % Calculation

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

Circuit Research Labs's Gross Margin for the fiscal year that ended in Dec. 2007 is calculated as

Circuit Research Labs's Gross Margin for the quarter that ended in Sep. 2008 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.

Circuit Research Labs  (OTCPK:CRLI) 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

Circuit Research Labs had a gross margin of 56.59% for the quarter that ended in Sep. 2008 => 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.

Circuit Research Labs Gross Margin % Related Terms

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Circuit Research Labs (Circuit Research Labs) Business Description