INOW (InfoNow) Gross Margin %: 37.64% (As of Sep. 2005)

What is InfoNow Gross Margin %?

InfoNow INOW -99.00% Gross Margin % is 37.64% as of Sep. 2005.

Gross Margin % is calculated as gross profit divided by its revenue. InfoNow's Gross Profit for the three months ended in Sep. 2005 was $0.87 Mil. InfoNow's Revenue for the three months ended in Sep. 2005 was $2.32 Mil. Therefore, InfoNow's Gross Margin % for the quarter that ended in Sep. 2005 was 37.64%.

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

INOW's Gross Margin % is not ranked ^*
in the Software industry.
Industry Median: 40.45
* Ranked among companies with meaningful Gross Margin % only.

InfoNow had a gross margin of 37.64% for the quarter that ended in Sep. 2005 => Competition eroding margins

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

InfoNow (OTCPK:INOW) 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

InfoNow had a gross margin of 37.64% for the quarter that ended in Sep. 2005 => Competition eroding margins

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.

InfoNow Gross Margin % Related Terms

InfoNow Gross Margin % Historical Data

* Premium members only.

The historical data trend for InfoNow'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.

InfoNow Gross Margin % Chart

InfoNow Annual Data

Trend

Dec96

Dec97

Dec98

Dec99

Dec00

Dec01

Dec02

Dec03

Dec04

Gross Margin %

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46.21

54.21

52.95

54.94

46.10

InfoNow Quarterly Data
	Dec00	Mar01	Jun01	Sep01	Dec01	Mar02	Jun02	Sep02	Dec02	Mar03	Jun03	Sep03	Dec03	Mar04	Jun04	Sep04	Dec04	Mar05	Jun05	Sep05
Gross Margin %	Get a 7-Day Free Trial															41.68	32.09	23.72	41.80	37.64

INOW vs CYBF, VRTC, VISM: Gross Margin % Comparison

For the Software - Application subindustry, InfoNow'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.

InfoNow Gross Margin % vs Software Industry

For the Software industry and Technology sector, InfoNow's Gross Margin % distribution charts can be found below:

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

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InfoNow Gross Margin % Calculation

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

InfoNow's Gross Margin for the fiscal year that ended in Dec. 2004 is calculated as

Gross Margin % (A: Dec. 2004 )	=	Gross Profit (A: Dec. 2004 )	/	Revenue (A: Dec. 2004 )
	=	5	/	10.879
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(10.879 - 5.864)	/	10.879
	=	46.10 %

InfoNow's Gross Margin for the quarter that ended in Sep. 2005 is calculated as

Gross Margin % (Q: Sep. 2005 )	=	Gross Profit (Q: Sep. 2005 )	/	Revenue (Q: Sep. 2005 )
	=	0.9	/	2.322
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(2.322 - 1.448)	/	2.322
	=	37.64 %

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.

Frequently Asked Questions Learn more about Gross Margin % →

What does a Gross Margin % of 37.64% mean?

InfoNow (INOW) has a Gross Margin % of 37.64% as of Sep. 2005. Gross margin is the ratio of total gross profit to net sales. View historical data on InfoNow and its competitors.

Is InfoNow's Gross Margin % too high?

InfoNow's current Gross Margin % is 37.64%. The Software industry median Gross Margin % is 40.45. InfoNow's value of 37.64% is 6.9% below this industry median.

How does InfoNow's Gross Margin % compare to CYBF and VRTC?

InfoNow's Gross Margin % of 37.64% can be compared against companies in the Software industry. The industry median Gross Margin % is 40.45. InfoNow's value of 37.64% is 6.9% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.

What is a good Gross Margin % for a Software company?

The median Gross Margin % among Software companies is 40.45, based on 2,685 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. InfoNow's current Gross Margin % of 37.64% is 6.9% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.

What does a high Gross Margin % mean?

A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on InfoNow and its competitors. For the Software industry, the median Gross Margin % is 40.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. InfoNow's current Gross Margin % is 37.64%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.

Is InfoNow stock overvalued right now?

InfoNow (INOW) has a current Gross Margin % of 37.64%. The current Gross Margin % is 37.64% and 6.9% below the Software industry median of 40.45. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.

How is Gross Margin % calculated?

Gross Margin % is calculated from a company's financial statements. For InfoNow (INOW), the current Gross Margin % is 37.64% as of Sep. 2005. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

InfoNow Business Description

Industry Technology Software

Comparable Companies XSAT:MENU B CYBF VRTC BOM:539843 BOM:539570 VISM BOM:534659 BOM:531673 ASX:RFN TXHD ASX:TOM XCNQ:SOFT XCNQ:TOOL TSXV:CYX ASX:CM8 ISGN ASX:TTL XPAR:ALIMR ALPP OSTO:TEONE

Address 1875 Lawrence Street, Suite 1100, Denver, CO, USA, 80202

Website http://www.infonow.com

InfoNow Corp is engaged in providing channel visibility and channel management solutions, in the form of software & services, to companies that sell their products through complex networks of distributors, dealers, resellers, retailers, agents or branches.