Green Planet Group (Green Planet Group) Gross Margin % : 18.75% (As of Sep. 2011)

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What is Green Planet Group Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Green Planet Group's Gross Profit for the three months ended in Sep. 2011 was $1.17 Mil. Green Planet Group's Revenue for the three months ended in Sep. 2011 was $6.26 Mil. Therefore, Green Planet Group's Gross Margin % for the quarter that ended in Sep. 2011 was 18.75%.

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

GNPG's Gross Margin % is not ranked ^*
in the Chemicals industry.
Industry Median: 22.58
* Ranked among companies with meaningful Gross Margin % only.

Green Planet Group had a gross margin of 18.75% for the quarter that ended in Sep. 2011 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Green Planet Group was 0.00% per year.

Green Planet Group Gross Margin % Historical Data

The historical data trend for Green Planet Group'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.

Green Planet Group Gross Margin % Chart

Green Planet Group Annual Data

Trend

Mar04

Mar05

Mar06

Mar07

Mar08

Mar09

Mar10

Mar11

Gross Margin %

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59.68

52.89

23.35

12.39

16.26

Green Planet Group Quarterly Data
	Dec06	Mar07	Jun07	Sep07	Dec07	Mar08	Jun08	Sep08	Dec08	Mar09	Jun09	Sep09	Dec09	Mar10	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11
Gross Margin %	Get a 7-Day Free Trial															15.74	14.62	20.11	14.86	18.75

Competitive Comparison of Green Planet Group's Gross Margin %

For the Specialty Chemicals subindustry, Green Planet Group'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.

Green Planet Group's Gross Margin % Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Green Planet Group's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Green Planet Group's Gross Margin % falls into.

Green Planet Group Gross Margin % Calculation

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

Green Planet Group's Gross Margin for the fiscal year that ended in Mar. 2011 is calculated as

Gross Margin % (A: Mar. 2011 )	=	Gross Profit (A: Mar. 2011 )	/	Revenue (A: Mar. 2011 )
	=	6	/	37.07
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(37.07 - 31.043)	/	37.07
	=	16.26 %

Green Planet Group's Gross Margin for the quarter that ended in Sep. 2011 is calculated as

Gross Margin % (Q: Sep. 2011 )	=	Gross Profit (Q: Sep. 2011 )	/	Revenue (Q: Sep. 2011 )
	=	1.2	/	6.261
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(6.261 - 5.087)	/	6.261
	=	18.75 %

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.

Green Planet Group (OTCPK:GNPG) 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

Green Planet Group had a gross margin of 18.75% for the quarter that ended in Sep. 2011 => 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.

Green Planet Group Gross Margin % Related Terms

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Green Planet Group (Green Planet Group) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » Green Planet Group Inc (OTCPK:GNPG) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

3259 E. Harbour Drive, Suite 101, Phoenix, AZ, USA, 85034

Website

https://www.greenplanetgroup.com

Green Planet Group Inc, through its subsidiaries, is engaged in the following businesses: production of lubricants and additives for gasoline and diesel-fueled engines; developing a hydrogen generator that reduces hydrocarbon emissions while improving fuel efficiency; developing a new "fast track" growing system capable of growing vast amounts of fresh organic food at the point of consumption reducing transportation costs while reducing water use by 90+% and increasing productivity by 300%; and developing green technologies for use in the mining of rare and precious metals and elements.