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Global Brokerage (Global Brokerage) Gross Margin % : 87.62% (As of Sep. 2017)


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What is Global Brokerage Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Global Brokerage's Gross Profit for the three months ended in Sep. 2017 was $38.5 Mil. Global Brokerage's Revenue for the three months ended in Sep. 2017 was $44.0 Mil. Therefore, Global Brokerage's Gross Margin % for the quarter that ended in Sep. 2017 was 87.62%.


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


GLBR's Gross Margin % is not ranked *
in the Capital Markets industry.
Industry Median: 48.7
* Ranked among companies with meaningful Gross Margin % only.

Global Brokerage had a gross margin of 87.62% for the quarter that ended in Sep. 2017 => Durable competitive advantage

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


Global Brokerage Gross Margin % Historical Data

The historical data trend for Global Brokerage'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.

Global Brokerage Gross Margin % Chart

Global Brokerage Annual Data
Trend Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16
Gross Margin %
Get a 7-Day Free Trial 81.65 76.72 77.28 62.04 52.95

Global Brokerage Quarterly Data
Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17
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 82.67 9.08 83.95 88.04 87.62

Competitive Comparison of Global Brokerage's Gross Margin %

For the Financial Data & Stock Exchanges subindustry, Global Brokerage'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.


Global Brokerage's Gross Margin % Distribution in the Capital Markets Industry

For the Capital Markets industry and Financial Services sector, Global Brokerage's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Global Brokerage's Gross Margin % falls into.



Global Brokerage Gross Margin % Calculation

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

Global Brokerage's Gross Margin for the fiscal year that ended in Dec. 2016 is calculated as

Gross Margin % (A: Dec. 2016 )=Gross Profit (A: Dec. 2016 ) / Revenue (A: Dec. 2016 )
=150.9 / 284.944
=(Revenue - Cost of Goods Sold) / Revenue
=(284.944 - 134.063) / 284.944
=52.95 %

Global Brokerage's Gross Margin for the quarter that ended in Sep. 2017 is calculated as


Gross Margin % (Q: Sep. 2017 )=Gross Profit (Q: Sep. 2017 ) / Revenue (Q: Sep. 2017 )
=38.5 / 43.971
=(Revenue - Cost of Goods Sold) / Revenue
=(43.971 - 5.443) / 43.971
=87.62 %

* 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.


Global Brokerage  (OTCPK:GLBR) 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

Global Brokerage had a gross margin of 87.62% for the quarter that ended in Sep. 2017 => 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.


Global Brokerage Gross Margin % Related Terms

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Global Brokerage (Global Brokerage) Business Description

Traded in Other Exchanges
N/A
Address
55 Water Street, 50th Floor, New York, NY, USA, 10041
Global Brokerage Inc operates as a holding company in the United States is engaged in the provision of providing online foreign exchange (FX) trading and related services to retail and institutional customers worldwide. The company offers spot FX trading that includes contracts for metals, fixed income, energy, and stock indices; and provides spread betting trading to the customers. The company is also engaged in hedge trading in its electronic market making, provides trading tools data and resources and educational courses. It generates is revenue by the way of trading facilities.
Executives
Nicola Jr Santoro other: Fmr. Chief Accounting Officer C/O FXCM INC, 55 WATER STREET, NEW YORK NY 10041
Lehman Brothers Holdings Inc 10 percent owner 1271 AVENUE OF THE AMERICAS, NEW YORK NY 10020
Michael F Price 10 percent owner C/O MFP INVESTORS LLC, 909 THIRD AVE, 33RD FLOOR, NEW YORK NY 10022
Mfp Investors Llc 10 percent owner 909 THIRD AVE, 33RD FLOOR, NEW YORK NY 10022

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