ERMG (E Record Management) Gross Margin %: 45.58% (As of Sep. 2004)


What is E Record Management Gross Margin %?

E Record Management ERMG -99.50% Gross Margin % is 45.58% as of Sep. 2004.

Gross Margin % is calculated as gross profit divided by its revenue. E Record Management's Gross Profit for the three months ended in Sep. 2004 was $0.13 Mil. E Record Management's Revenue for the three months ended in Sep. 2004 was $0.29 Mil. Therefore, E Record Management's Gross Margin % for the quarter that ended in Sep. 2004 was 45.58%.


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


ERMG's Gross Margin % is not ranked *
in the Hardware industry.
Industry Median: 24.565
* Ranked among companies with meaningful Gross Margin % only.

E Record Management had a gross margin of 45.58% for the quarter that ended in Sep. 2004 => Durable competitive advantage

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

E Record Management  (OTCPK:ERMG) 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

E Record Management had a gross margin of 45.58% for the quarter that ended in Sep. 2004 => 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.

E Record Management Gross Margin % Related Terms

E Record Management Gross Margin % Historical Data

* Premium members only.

The historical data trend for E Record Management'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.

E Record Management Gross Margin % Chart

E Record Management Annual Data
Trend Dec03
Gross Margin %
14.00

E Record Management Quarterly Data
Dec03 Mar04 Jun04 Sep04
Gross Margin % 0.00 31.29 28.38 45.58

ERMG vs MEEC, ISNS, UCLE: Gross Margin % Comparison

For the Scientific & Technical Instruments subindustry, E Record Management'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.

E Record Management Gross Margin % vs Hardware Industry

For the Hardware industry and Technology sector, E Record Management's Gross Margin % distribution charts can be found below:

* The bar in red indicates where E Record Management's Gross Margin % falls into.


E Record Management Gross Margin % Calculation

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

E Record Management's Gross Margin for the fiscal year that ended in Dec. 2003 is calculated as

Gross Margin % (A: Dec. 2003 )=Gross Profit (A: Dec. 2003 ) / Revenue (A: Dec. 2003 )
=0.2 / 1.279
=(Revenue - Cost of Goods Sold) / Revenue
=(1.279 - 1.1) / 1.279
=14.00 %

E Record Management's Gross Margin for the quarter that ended in Sep. 2004 is calculated as


Gross Margin % (Q: Sep. 2004 )=Gross Profit (Q: Sep. 2004 ) / Revenue (Q: Sep. 2004 )
=0.1 / 0.294
=(Revenue - Cost of Goods Sold) / Revenue
=(0.294 - 0.16) / 0.294
=45.58 %

* 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.

Frequently Asked Questions Learn more about Gross Margin % →
What does a Gross Margin % of 45.58% mean?
E Record Management (ERMG) has a Gross Margin % of 45.58% as of Sep. 2004. Gross margin is the ratio of total gross profit to net sales. View historical data on E Record Management and its competitors.
Is E Record Management's Gross Margin % too high?
E Record Management's current Gross Margin % is 45.58%. The Hardware industry median Gross Margin % is 24.57. E Record Management's value of 45.58% is 85.5% above this industry median.
How does E Record Management's Gross Margin % compare to MEEC and ISNS?
E Record Management's Gross Margin % of 45.58% can be compared against companies in the Hardware industry. The industry median Gross Margin % is 24.57. E Record Management's value of 45.58% is 85.5% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Hardware company?
The median Gross Margin % among Hardware companies is 24.57, based on 2,454 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. E Record Management's current Gross Margin % of 45.58% is 85.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on E Record Management and its competitors. For the Hardware industry, the median Gross Margin % is 24.57 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. E Record Management's current Gross Margin % is 45.58%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is E Record Management stock overvalued right now?
E Record Management (ERMG) has a current Gross Margin % of 45.58%. The current Gross Margin % is 45.58% and 85.5% above the Hardware industry median of 24.57. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For E Record Management (ERMG), the current Gross Margin % is 45.58% as of Sep. 2004. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.