Interplay Entertainment (Interplay Entertainment) Gross Margin % : 85.37% (As of Mar. 2011)

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What is Interplay Entertainment Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Interplay Entertainment's Gross Profit for the three months ended in Mar. 2011 was $0.18 Mil. Interplay Entertainment's Revenue for the three months ended in Mar. 2011 was $0.21 Mil. Therefore, Interplay Entertainment's Gross Margin % for the quarter that ended in Mar. 2011 was 85.37%.

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

IPLY's Gross Margin % is not ranked ^*
in the Software industry.
Industry Median: 41.73
* Ranked among companies with meaningful Gross Margin % only.

Interplay Entertainment had a gross margin of 85.37% for the quarter that ended in Mar. 2011 => Durable competitive advantage

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

Interplay Entertainment Gross Margin % Historical Data

The historical data trend for Interplay Entertainment'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.

Interplay Entertainment Gross Margin % Chart

Interplay Entertainment Annual Data

Trend

Dec01

Dec02

Dec03

Dec04

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Gross Margin %

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82.73

99.87

99.13

89.19

85.80

Interplay Entertainment Quarterly Data
	Jun06	Sep06	Dec06	Mar07	Jun07	Sep07	Dec07	Mar08	Jun08	Sep08	Dec08	Mar09	Jun09	Sep09	Dec09	Mar10	Jun10	Sep10	Dec10	Mar11
Gross Margin %	Get a 7-Day Free Trial															94.20	82.86	86.81	82.11	85.37

Competitive Comparison of Interplay Entertainment's Gross Margin %

For the Software - Application subindustry, Interplay Entertainment'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.

Interplay Entertainment's Gross Margin % Distribution in the Software Industry

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

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

Interplay Entertainment Gross Margin % Calculation

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

Interplay Entertainment's Gross Margin for the fiscal year that ended in Dec. 2010 is calculated as

Gross Margin % (A: Dec. 2010 )	=	Gross Profit (A: Dec. 2010 )	/	Revenue (A: Dec. 2010 )
	=	1.2	/	1.38
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(1.38 - 0.196)	/	1.38
	=	85.80 %

Interplay Entertainment's Gross Margin for the quarter that ended in Mar. 2011 is calculated as

Gross Margin % (Q: Mar. 2011 )	=	Gross Profit (Q: Mar. 2011 )	/	Revenue (Q: Mar. 2011 )
	=	0.2	/	0.205
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(0.205 - 0.03)	/	0.205
	=	85.37 %

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.

Interplay Entertainment (OTCPK:IPLY) 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

Interplay Entertainment had a gross margin of 85.37% for the quarter that ended in Mar. 2011 => 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.

Interplay Entertainment Gross Margin % Related Terms

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