GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Firma Holdings Corp (OTCPK:FRMA) » Definitions » Gross Margin %

Firma Holdings (Firma Holdings) Gross Margin % : -31.69% (As of Jun. 2015)


View and export this data going back to 2008. Start your Free Trial

What is Firma Holdings Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Firma Holdings's Gross Profit for the three months ended in Jun. 2015 was $-0.08 Mil. Firma Holdings's Revenue for the three months ended in Jun. 2015 was $0.24 Mil. Therefore, Firma Holdings's Gross Margin % for the quarter that ended in Jun. 2015 was -31.69%.


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


FRMA's Gross Margin % is not ranked *
in the Metals & Mining industry.
Industry Median: 19.17
* Ranked among companies with meaningful Gross Margin % only.

Firma Holdings had a gross margin of -31.69% for the quarter that ended in Jun. 2015 => No sustainable competitive advantage

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


Firma Holdings Gross Margin % Historical Data

The historical data trend for Firma Holdings'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.

Firma Holdings Gross Margin % Chart

Firma Holdings Annual Data
Trend Oct06 Oct07 Oct08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14
Gross Margin %
Get a 7-Day Free Trial Premium Member Only -311.25 - - - -

Firma Holdings Quarterly Data
Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15
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 - - - - -31.69

Competitive Comparison of Firma Holdings's Gross Margin %

For the Other Industrial Metals & Mining subindustry, Firma Holdings'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.


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

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

* The bar in red indicates where Firma Holdings's Gross Margin % falls into.



Firma Holdings Gross Margin % Calculation

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

Firma Holdings'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 )
=0.1 / 0.105
=(Revenue - Cost of Goods Sold) / Revenue
=(0.105 - 0) / 0.105
=N/A %

Firma Holdings's Gross Margin for the quarter that ended in Jun. 2015 is calculated as


Gross Margin % (Q: Jun. 2015 )=Gross Profit (Q: Jun. 2015 ) / Revenue (Q: Jun. 2015 )
=-0.1 / 0.243
=(Revenue - Cost of Goods Sold) / Revenue
=(0.243 - 0.32) / 0.243
=-31.69 %

* 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.


Firma Holdings  (OTCPK:FRMA) 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

Firma Holdings had a gross margin of -31.69% for the quarter that ended in Jun. 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.


Firma Holdings Gross Margin % Related Terms

Thank you for viewing the detailed overview of Firma Holdings's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Firma Holdings (Firma Holdings) Business Description

Traded in Other Exchanges
N/A
Address
4915 Main Street, 2nd Floor, Suite 3, Downers Grove, IL, USA, 60515
Firma Holdings Corp operates in the mining and consumer product sales business. In addition, it also sells personal protection equipment (commonly referred to as "PPE"), and household and consumer products with its existing joint venture partners as well as participates as a procurement agent for both commercial and government entities.