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Inmet Mining (FRA:MMC) Gross Margin % : 54.81% (As of Dec. 2012)


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What is Inmet Mining Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Inmet Mining's Gross Profit for the three months ended in Dec. 2012 was €108.5 Mil. Inmet Mining's Revenue for the three months ended in Dec. 2012 was €198.0 Mil. Therefore, Inmet Mining's Gross Margin % for the quarter that ended in Dec. 2012 was 54.81%.


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


FRA:MMC's Gross Margin % is not ranked *
in the Metals & Mining industry.
Industry Median: 19.22
* Ranked among companies with meaningful Gross Margin % only.

Inmet Mining had a gross margin of 54.81% for the quarter that ended in Dec. 2012 => Durable competitive advantage

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


Inmet Mining Gross Margin % Historical Data

The historical data trend for Inmet Mining'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.

Inmet Mining Gross Margin % Chart

Inmet Mining Annual Data
Trend Dec03 Dec04 Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 44.38 44.14 45.87 42.13 59.02

Inmet Mining Quarterly Data
Mar08 Jun08 Sep08 Dec08 Mar09 Jun09 Sep09 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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 38.40 61.84 55.01 62.98 54.81

Competitive Comparison of Inmet Mining's Gross Margin %

For the Other Industrial Metals & Mining subindustry, Inmet Mining'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.


Inmet Mining's Gross Margin % Distribution in the Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, Inmet Mining's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Inmet Mining's Gross Margin % falls into.



Inmet Mining Gross Margin % Calculation

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

Inmet Mining'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 )
=505.5 / 856.47
=(Revenue - Cost of Goods Sold) / Revenue
=(856.47 - 350.994) / 856.47
=59.02 %

Inmet Mining'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 )
=108.5 / 198.019
=(Revenue - Cost of Goods Sold) / Revenue
=(198.019 - 89.48) / 198.019
=54.81 %

* 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.


Inmet Mining  (FRA:MMC) 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

Inmet Mining had a gross margin of 54.81% 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.


Inmet Mining Gross Margin % Related Terms

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Inmet Mining (FRA:MMC) Business Description

Traded in Other Exchanges
N/A
Address
Website
Inmet Mining Corporation is a Canadian-based global mining company that produces base metals with a focus on copper. It operates and develops underground and open pit mines safely, responsibly and cost effectively. The Company has three operating properties and one development property around the world. Çayeli is an underground mine on the Black Sea coast of northeastern Turkey. It produces copper and zinc concentrates, which are sold to international and domestic smelters and traders. Las Cruces is an open pit mine in southern Spain. Las Cruces uses leaching and electrowinning technology to produce copper cathode which are sold to buyers in the Spanish and Mediterranean markets. Pyhäsalmi is an underground copper and zinc mine in central Finland. It produces copper, zinc and pyrite concentrates. Copper and zinc concentrates are sold under long-term contracts to smelters in Finland. Pyrite is sold under contract to customers in Europe and Asia as well as in the spot market. Cobre Panama is an open pit copper development project in Panama.