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SeaCube Container Leasing (FRA:03S) Gross Margin % : 96.48% (As of Dec. 2012)


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What is SeaCube Container Leasing Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. SeaCube Container Leasing's Gross Profit for the three months ended in Dec. 2012 was €37.5 Mil. SeaCube Container Leasing's Revenue for the three months ended in Dec. 2012 was €38.8 Mil. Therefore, SeaCube Container Leasing's Gross Margin % for the quarter that ended in Dec. 2012 was 96.48%.


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


FRA:03S's Gross Margin % is not ranked *
in the Business Services industry.
Industry Median: 34.34
* Ranked among companies with meaningful Gross Margin % only.

SeaCube Container Leasing had a gross margin of 96.48% for the quarter that ended in Dec. 2012 => Durable competitive advantage

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


SeaCube Container Leasing Gross Margin % Historical Data

The historical data trend for SeaCube Container Leasing'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.

SeaCube Container Leasing Gross Margin % Chart

SeaCube Container Leasing Annual Data
Trend Dec08 Dec09 Dec10 Dec11 Dec12
Gross Margin %
94.23 93.60 95.53 96.47 97.02

SeaCube Container Leasing Quarterly Data
Dec09 Mar10 Jun10 Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 96.47 97.15 97.10 97.36 96.48

Competitive Comparison of SeaCube Container Leasing's Gross Margin %

For the Rental & Leasing Services subindustry, SeaCube Container Leasing'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.


SeaCube Container Leasing's Gross Margin % Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, SeaCube Container Leasing's Gross Margin % distribution charts can be found below:

* The bar in red indicates where SeaCube Container Leasing's Gross Margin % falls into.



SeaCube Container Leasing Gross Margin % Calculation

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

SeaCube Container Leasing's Gross Margin for the fiscal year that ended in Dec. 2012 is calculated as

Gross Margin % (A: Dec. 2012 )=Gross Profit (A: Dec. 2012 ) / Revenue (A: Dec. 2012 )
=147.1 / 151.573
=(Revenue - Cost of Goods Sold) / Revenue
=(151.573 - 4.517) / 151.573
=97.02 %

SeaCube Container Leasing's Gross Margin for the quarter that ended in Dec. 2012 is calculated as


Gross Margin % (Q: Dec. 2012 )=Gross Profit (Q: Dec. 2012 ) / Revenue (Q: Dec. 2012 )
=37.5 / 38.831
=(Revenue - Cost of Goods Sold) / Revenue
=(38.831 - 1.367) / 38.831
=96.48 %

* 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.


SeaCube Container Leasing  (FRA:03S) 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

SeaCube Container Leasing had a gross margin of 96.48% for the quarter that ended in Dec. 2012 => 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.


SeaCube Container Leasing Gross Margin % Related Terms

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SeaCube Container Leasing (FRA:03S) Business Description

Traded in Other Exchanges
N/A
Address
Website
SeaCube Container Leasing Ltd was incorporated in Bermuda in March 2010. It is a container leasing company based on total assets. Containers are the primary means by which products are shipped internationally because they facilitate the secure and efficient movement of goods via multiple transportation modes, including ships, rail and trucks. The principal activities of its business include the acquisition, leasing, re-leasing and subsequent sale of refrigerated and dry containers and generator sets. It leases its containers primarily under long-term contracts to a diverse group of the shipping lines. It owns or manages a fleet of 507,013 units, representing 795,039 TEUs of containers and generator sets. It leases three types of assets: Reefers, which are used for perishable items such as fresh and frozen foods; Dry freight containers, which are used for general cargo such as manufactured component parts, consumer staples and apparel; and Gensets, which are diesel generators used to provide mobile power to reefers. The Company's fleet of equipment consists of three types of container assets: refrigerated containers, dry freight containers and generator sets. Refrigerated containers, or reefers, are insulated containers that include an integrated cooling machine. These containers are typically used to carry perishable cargo such as fresh and frozen produce, meat, poultry, fish and other temperature sensitive products. A dry container is essentially a steel box with a set of doors on one end. Dry containers are the least-expensive type of intermodal container and are used to carry most types of freight. Generator sets, or gensets, are portable diesel fueled generators used to power reefers. They can be used when reefers are transported by trucks. It competes with Textainer Group, Florens Group, Triton Container, TAL International and GE Seaco. The Company is subject to federal, state, local and foreign laws and regulations relating to the protection of the environment, including those governing the discharge of pollutants to air and water, the management and disposal of hazardous substances and wastes and the cleanup of contaminated sites.

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