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Erickson (Erickson) Gross Margin % : -2.62% (As of Jun. 2016)


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What is Erickson Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Erickson's Gross Profit for the three months ended in Jun. 2016 was $-1.3 Mil. Erickson's Revenue for the three months ended in Jun. 2016 was $50.8 Mil. Therefore, Erickson's Gross Margin % for the quarter that ended in Jun. 2016 was -2.62%.


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


EKSN's Gross Margin % is not ranked *
in the Aerospace & Defense industry.
Industry Median: 26.03
* Ranked among companies with meaningful Gross Margin % only.

Erickson had a gross margin of -2.62% for the quarter that ended in Jun. 2016 => No sustainable competitive advantage

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


Erickson Gross Margin % Historical Data

The historical data trend for Erickson'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.

Erickson Gross Margin % Chart

Erickson Annual Data
Trend Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15
Gross Margin %
Get a 7-Day Free Trial 29.77 33.97 29.60 23.34 15.89

Erickson Quarterly Data
Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16
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 11.81 32.67 8.41 -8.70 -2.62

Competitive Comparison of Erickson's Gross Margin %

For the Aerospace & Defense subindustry, Erickson'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.


Erickson's Gross Margin % Distribution in the Aerospace & Defense Industry

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

* The bar in red indicates where Erickson's Gross Margin % falls into.



Erickson Gross Margin % Calculation

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

Erickson's Gross Margin for the fiscal year that ended in Dec. 2015 is calculated as

Gross Margin % (A: Dec. 2015 )=Gross Profit (A: Dec. 2015 ) / Revenue (A: Dec. 2015 )
=47.3 / 297.52
=(Revenue - Cost of Goods Sold) / Revenue
=(297.52 - 250.245) / 297.52
=15.89 %

Erickson's Gross Margin for the quarter that ended in Jun. 2016 is calculated as


Gross Margin % (Q: Jun. 2016 )=Gross Profit (Q: Jun. 2016 ) / Revenue (Q: Jun. 2016 )
=-1.3 / 50.838
=(Revenue - Cost of Goods Sold) / Revenue
=(50.838 - 52.168) / 50.838
=-2.62 %

* 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.


Erickson  (OTCPK:EKSN) 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

Erickson had a gross margin of -2.62% for the quarter that ended in Jun. 2016 => No sustainable 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.


Erickson Gross Margin % Related Terms

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Erickson (Erickson) Business Description

Comparable Companies
Traded in Other Exchanges
N/A
Address
5550 South West Macadam Avenue, Suite 200, Portland, OR, USA, 97239
Erickson Inc owns and operates a diverse fleet of aircraft. The company offers support and maintenance, repair, remanufacture and related overhaul services to Aircrane and other aircrafts. In addition, the company leases aircrafts for specific missions. Geographically the activities are carried out through the region of United States.