Gross Margin % is calculated as gross profit divided by its revenue. tw telecom's Gross Profit for the
three
months ended in Jun. 2014 was €175 Mil. tw telecom's Revenue for the
three
months ended in Jun. 2014 was €309 Mil. Therefore, tw telecom's Gross Margin % for the quarter that ended in Jun. 2014 was 56.78%.
The historical rank and industry rank for tw telecom's Gross Margin % or its related term are showing as below:
FRA:TWM'
s Gross Margin % Range Over the Past 10 Years
Min: 44.87 Med: 58.3 Max: 62.68
Current: 57.54
During the past 13 years, the highestGross Margin % of tw telecom was 62.68%. The lowest was 44.87%. And the median was 58.30%.
FRA:TWM's Gross Margin % is not ranked
in the Telecommunication Services industry.
Industry Median: 49.84
vs FRA:TWM: 57.54
tw telecom had a gross margin of 56.78% for the quarter that ended in Jun. 2014 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for tw telecom was 0.00% per year.
tw telecom Gross Margin % Historical Data
The historical data trend for tw telecom'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 tw telecom's Gross Margin %
For the Telecom Services subindustry, tw telecom'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.
tw telecom's Gross Margin % Distribution in the Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, tw telecom's Gross Margin % distribution charts can be found below:
* The bar in red indicates where tw telecom'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.
tw telecom (FRA:TWM) 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
tw telecom had a gross margin of 56.78% for the quarter that ended in Jun. 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.
tw telecom Gross Margin % Related Terms
Thank you for viewing the detailed overview of tw telecom's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Tw telecom inc was formed in 1998. The Company together with its wholly-owned subsidiaries provide managed network services, specializing in business Ethernet, data networking, Converged, IP-based virtual private network or "IP VPN", Internet access, voice, including voice over Internet Protocol or "VoIP", and network security services to enterprise organizations, including public sector entities, and carriers throughout the U.S., including global locations. It offers a portfolio of solutions to its customers with predictable and reliable service quality. It designs and deliver scalable and efficient solutions that enable its customers complex and evolving business applications. These solutions emphasize its data networking service offerings, which include an expanding portfolio of business Ethernet data services, managed network services and its converged service offerings comprised of data, Internet, voice, security, remote access and managed routers. It also provides a broad range of traditional services, including a dedicated network service portfolio with private line, special access and private transport services, voice services and secure Internet access. Its customers include enterprise organizations in a wide variety of industry segments, including, among others, the financial services, technology and science, health care, distribution, manufacturing and professional services industries, data centers, cloud application providers, public sector entities, system integrators and communications service providers, including ILECs, CLECs, wireless communications companies and cable companies. Its primary competition is from the ILECs, CLECs and cable companies. The ILECs, primarily AT&T Inc., Verizon Communications, Inc. and CenturyLink Inc., other CLECs and some cable companies offer services substantially similar to some of those it offers and target some of the same customers. The Company is subject to regulation by the Federal Communications Commission ("FCC"), state regulatory authorities and local government agencies.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
FRA:TWM has been successfully added to your 