Gross Margin % is calculated as gross profit divided by its revenue. Compuware's Gross Profit for the
three
months ended in Sep. 2014 was €91.6 Mil. Compuware's Revenue for the
three
months ended in Sep. 2014 was €132.6 Mil. Therefore, Compuware's Gross Margin % for the quarter that ended in Sep. 2014 was 69.06%.
The historical rank and industry rank for Compuware's Gross Margin % or its related term are showing as below:
FRA:CWR'
s Gross Margin % Range Over the Past 10 Years
Min: 44.7 Med: 64.84 Max: 78.98
Current: 74.21
During the past 13 years, the highestGross Margin % of Compuware was 78.98%. The lowest was 44.70%. And the median was 64.84%.
FRA:CWR's Gross Margin % is not ranked
in the Software industry.
Industry Median: 41.8
vs FRA:CWR: 74.21
Compuware had a gross margin of 69.06% for the quarter that ended in Sep. 2014 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Compuware was 1.90% per year.
Compuware Gross Margin % Historical Data
The historical data trend for Compuware'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.
Competitive Comparison of Compuware's Gross Margin %
For the Software - Application subindustry, Compuware'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.
Compuware's Gross Margin % Distribution in the Software Industry
For the Software industry and Technology sector, Compuware's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Compuware's Gross Margin % falls into.
* 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.
Compuware (FRA:CWR) 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
Compuware had a gross margin of 69.06% for the quarter that ended in Sep. 2014 => 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.
Compuware Gross Margin % Related Terms
Thank you for viewing the detailed overview of Compuware's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Compuware Corp a Michigan corporation was incorporated in 1973. The Company delivers services and software that enable its customers' important technologies to perform at their peak. It delivers the solutions through software that is installed and run on its customers' owned hardware and applications and through a Software as a Service ('SaaS') model accessed via its hosted networks. It has six business segments: Application Performance Managemen (APM), Mainframe, Changepoint, Uniface, Professional Services and Covisint Application Services ('Covisint'). Its Compuware Application Performance Management ('Compuware APM') consists of its solutions for optimizing the performance of web, non-web, mobile, streaming and cloud applications. Its Mainframe Software Products improve the productivity of development, maintenance and support teams in application analysis, testing, defect detection and remediation, fault management, file and data management, data compliance and application performance management in the IBM z/OS environment. Its Changepoint software combines professional services automation with project portfolio management capabilities to give customers complete visibility into projects, investments and resources for informed business planning and financial control. Its Uniface solution is Compuware's Rapid Application Development environment for building, renewing and integrating some of the complex enterprise applications. Its Covisint application services provide a cloud engagement platform for enabling organizations to securely connect, engage and collaborate with large, distributed communities of customers, business partners and suppliers. Its products and services are used by the IT departments and lines of business of a of commercial and government organizations. Its competitors include BMC Software Inc., CA, Inc., International Business Machines ('IBM'), Hewlett-Packard Company, Keynote Systems, Inc., Accenture, Computer Sciences Corporation, HP Enterprise Services, Analysts International Corporation and Infosys Technologies.
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