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Baltic Trading (FRA:L8B) Gross Margin % : -3.12% (As of Mar. 2015)


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What is Baltic Trading Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Baltic Trading's Gross Profit for the three months ended in Mar. 2015 was €-0.20 Mil. Baltic Trading's Revenue for the three months ended in Mar. 2015 was €6.39 Mil. Therefore, Baltic Trading's Gross Margin % for the quarter that ended in Mar. 2015 was -3.12%.


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


FRA:L8B's Gross Margin % is not ranked *
in the Transportation industry.
Industry Median: 19.99
* Ranked among companies with meaningful Gross Margin % only.

Baltic Trading had a gross margin of -3.12% for the quarter that ended in Mar. 2015 => No sustainable competitive advantage

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


Baltic Trading Gross Margin % Historical Data

The historical data trend for Baltic Trading'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.

Baltic Trading Gross Margin % Chart

Baltic Trading Annual Data
Trend Dec09 Dec10 Dec11 Dec12 Dec13 Dec14
Gross Margin %
Get a 7-Day Free Trial 73.01 61.77 33.28 46.62 41.02

Baltic Trading Quarterly Data
Jun10 Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15
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 45.46 36.14 40.80 40.73 -3.12

Competitive Comparison of Baltic Trading's Gross Margin %

For the Marine Shipping subindustry, Baltic Trading'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.


Baltic Trading's Gross Margin % Distribution in the Transportation Industry

For the Transportation industry and Industrials sector, Baltic Trading's Gross Margin % distribution charts can be found below:

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



Baltic Trading Gross Margin % Calculation

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

Baltic Trading's Gross Margin for the fiscal year that ended in Dec. 2014 is calculated as

Gross Margin % (A: Dec. 2014 )=Gross Profit (A: Dec. 2014 ) / Revenue (A: Dec. 2014 )
=15.1 / 36.917
=(Revenue - Cost of Goods Sold) / Revenue
=(36.917 - 21.772) / 36.917
=41.02 %

Baltic Trading's Gross Margin for the quarter that ended in Mar. 2015 is calculated as


Gross Margin % (Q: Mar. 2015 )=Gross Profit (Q: Mar. 2015 ) / Revenue (Q: Mar. 2015 )
=-0.2 / 6.386
=(Revenue - Cost of Goods Sold) / Revenue
=(6.386 - 6.585) / 6.386
=-3.12 %

* 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.


Baltic Trading  (FRA:L8B) 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

Baltic Trading had a gross margin of -3.12% for the quarter that ended in Mar. 2015 => 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.


Baltic Trading Gross Margin % Related Terms

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Baltic Trading (FRA:L8B) Business Description

Traded in Other Exchanges
N/A
Address
Baltic Trading Ltd is a New York City-based company incorporated in October 2009 in the Marshall Islands to conduct shipping business focused on the drybulk industry spot market. The Company's fleet currently consists of four Capesize vessels, four Supramax vessels and five Handysize vessels with an aggregate carrying capacity of approximately 1,095,000 deadweight tons. Its fleet contains five groups of sister ships, which are vessels of virtually identical sizes and specifications. It operates a fleet of drybulk ships that transports iron ore, coal, grain, steel products and other drybulk cargoes along worldwide shipping routes. It plans to operate all of its vessels in the spot market, on spot market-related time charters, or in vessel pools trading in the spot market. Its customers include national, regional and international companies, including Cargill International S.A. ('Cargill'), Klaveness Chartering ('Klaveness'), Resource Marine PTE Ltd. (part of the Macquarie group of Companies) ('Resource Marine'), and Swissmarine Services S.A. ('Swissmarine'). The Company competes with other owners of drybulk carriers in the Capesize, Supramax and Handysize class sectors, some of whom may also charter its vessels as customers. The Company is subject to international conventions and treaties, national, state and local laws and regulations in force in the countries in which its vessels may operate or are atregistered relating to safety and health and environmental protection including the storage, handling, emission, transportation and discharge of hazardous and non-hazardous merials, and the remediation of contamination and liability for damage to natural resources.

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