Emmis Communications (Emmis Communications) Gross Margin % : 10.63% (As of Feb. 2020)

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What is Emmis Communications Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Emmis Communications's Gross Profit for the three months ended in Feb. 2020 was $1.11 Mil. Emmis Communications's Revenue for the three months ended in Feb. 2020 was $10.44 Mil. Therefore, Emmis Communications's Gross Margin % for the quarter that ended in Feb. 2020 was 10.63%.

Warning Sign:

Emmis Communications Corp gross margin has been in long term decline. The average rate of decline per year is -20%.

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

EMMSP.PFD' s Gross Margin % Range Over the Past 10 Years
Min: 2.59 Med: 19.59 Max: 23.93
Current: 22

During the past 13 years, the highest Gross Margin % of Emmis Communications was 23.93%. The lowest was 2.59%. And the median was 19.59%.

EMMSP.PFD's Gross Margin % is not ranked
in the Media - Diversified industry.
Industry Median: 38.36 vs EMMSP.PFD: 22.00

Emmis Communications had a gross margin of 10.63% for the quarter that ended in Feb. 2020 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Emmis Communications was -20.00% per year.

Emmis Communications Gross Margin % Historical Data

The historical data trend for Emmis Communications'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.

Emmis Communications Gross Margin % Chart

Emmis Communications Annual Data

Trend

Feb11

Feb12

Feb13

Feb14

Feb15

Feb16

Feb17

Feb18

Feb19

Feb20

Gross Margin %

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20.76

16.07

19.35

2.59

16.89

Emmis Communications Quarterly Data
	May15	Aug15	Nov15	Feb16	May16	Aug16	Nov16	Feb17	May17	Aug17	Nov17	Feb18	May18	Aug18	Nov18	Feb19	May19	Aug19	Nov19	Feb20
Gross Margin %	Get a 7-Day Free Trial															7.14	28.79	12.20	23.64	10.63

Competitive Comparison of Emmis Communications's Gross Margin %

For the Broadcasting subindustry, Emmis Communications'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.

Emmis Communications's Gross Margin % Distribution in the Media - Diversified Industry

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

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

Emmis Communications Gross Margin % Calculation

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

Emmis Communications's Gross Margin for the fiscal year that ended in Feb. 2020 is calculated as

Gross Margin % (A: Feb. 2020 )	=	Gross Profit (A: Feb. 2020 )	/	Revenue (A: Feb. 2020 )
	=	6.7	/	39.71
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(39.71 - 33.001)	/	39.71
	=	16.89 %

Emmis Communications's Gross Margin for the quarter that ended in Feb. 2020 is calculated as

Gross Margin % (Q: Feb. 2020 )	=	Gross Profit (Q: Feb. 2020 )	/	Revenue (Q: Feb. 2020 )
	=	1.1	/	10.444
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(10.444 - 9.334)	/	10.444
	=	10.63 %

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.

Emmis Communications (OTCPK:EMMSP.PFD) 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

Emmis Communications had a gross margin of 10.63% for the quarter that ended in Feb. 2020 => 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.

Emmis Communications Gross Margin % Related Terms

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

Emmis Communications (Emmis Communications) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » Emmis Communications Corp (OTCPK:EMMSP.PFD) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

40 Monument Circle, Suite 700, One EMMIS Plaza, Indianapolis, IN, USA, 46204

Website

https://www.emmis.com

Emmis Corp, formerly Emmis Communications Corp is a diversified media company principally focused on radio broadcasting. The company owns and operates radio and magazine entities in large and medium-sized markets throughout the United States. Its operations have aligned into two business segments: Radio and Publishing. A vast majority of revenue is generated from the Radio segment. The company generates revenue in the form of Advertising; Circulation, which includes revenues from digital and home delivery subscriptions; Nontraditional, which includes ticket sales and sponsorship of events on their stations and magazine conduct; LMA(Local Marketing Agreement) Fees; and other revenues.

Executives

Paul V. Brenner	officer: President	40 MONUMENT CIRCLE, SUITE 700, INDIANAPOLIS IN 46204
Ryan A Hornaday	officer: EVP, CFO & Treasurer	40 MONUMENT CIRCLE, SUITE 700, INDIANAPOLIS IN 46204
James M Dubin	director	ONE MADISON PLACE, HARRISON NY 10528
Herbert Simon	other: Member of 10% owner 13d group	115 W WASHINGTON ST, INDIANAPOLIS IN 46204
Hsjs, Llc	other: Member of 10% owner 13d group	C/O MELVIN SIMON & ASSOCIATES, 225 W WASHINGTON ST, INDIANAPOLIS IN 46204
2012 Retention Plan Trust	10 percent owner	40 MONUMENT CIRCLE, SUITE 700, INDIANAPOLIS IN 46204
Michelle Duncan Bergman	director	25 WEST ROAD, SHORT HILLS NJ 07078
Joseph R Siegelbaum	director	40 MONUMENT CIRCLE, SUITE 700, INDIANAPOLIS IN 46204
David Gale	director	220 MONTGOMERY STREET, SUITE 426, SAN FRANCISCO CA 94104
Bradley Louis Radoff	10 percent owner	2727 KIRBY DRIVE, UNIT 29L, HOUSTON TX 77098
Group, Lllp Djd	other: member of 10% owner group	4221 WEST BOY SCOUT BOULEVARD, SUITE 1000, TAMPA FL 33607
Family Foundation Radoff	10 percent owner	2727 KIRBY DRIVE, UNIT 29L, HOUSTON TX 77098
Defosset Don	other: member of 10% owner group	4221 WEST BOY SCOUT BOULEVARD, SUITE 1000, TAMPA FL 33607
Smith Management Llc	10 percent owner	885 THIRD AVENUE, 34TH FLOOR, NEW YORK NY 10022
Alden Global Capital Ltd	10 percent owner	THIRD FLOOR, ONE WAVERLEY PLACE, UNION STREET, ST. HELIER Y9 JE2 3RF