IXOG (Index Oil & Gas) Gross Margin %: 71.65% (As of Mar. 2009)

What is Index Oil & Gas Gross Margin %?

Index Oil & Gas IXOG -99.86% Gross Margin % is 71.65% as of Mar. 2009.

Gross Margin % is calculated as gross profit divided by its revenue. Index Oil & Gas's Gross Profit for the three months ended in Mar. 2009 was $0.19 Mil. Index Oil & Gas's Revenue for the three months ended in Mar. 2009 was $0.26 Mil. Therefore, Index Oil & Gas's Gross Margin % for the quarter that ended in Mar. 2009 was 71.65%.

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

IXOG's Gross Margin % is not ranked ^*
in the Oil & Gas industry.
Industry Median: 25.7
* Ranked among companies with meaningful Gross Margin % only.

Index Oil & Gas had a gross margin of 71.65% for the quarter that ended in Mar. 2009 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Index Oil & Gas was 0.00% per year.

Index Oil & Gas (OTCPK:IXOG) 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

Index Oil & Gas had a gross margin of 71.65% for the quarter that ended in Mar. 2009 => 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.

Index Oil & Gas Gross Margin % Related Terms

Index Oil & Gas Gross Margin % Historical Data

* Premium members only.

The historical data trend for Index Oil & Gas'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.

Index Oil & Gas Gross Margin % Chart

Index Oil & Gas Annual Data

Trend

Dec04

Dec05

Mar06

Mar07

Mar08

Mar09

Gross Margin %

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73.86

78.01

74.84

82.18

75.11

Index Oil & Gas Quarterly Data
	Dec04	Mar05	Jun05	Sep05	Dec05	Mar06	Jun06	Sep06	Dec06	Mar07	Jun07	Sep07	Dec07	Mar08	Jun08	Sep08	Dec08	Mar09
Gross Margin %	Get a 7-Day Free Trial													86.92	86.70	83.81	54.65	71.65

IXOG vs FPPP, UNGS, GBEYF: Gross Margin % Comparison

For the Oil & Gas E&P subindustry, Index Oil & Gas'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.

Index Oil & Gas Gross Margin % vs Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Index Oil & Gas's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Index Oil & Gas's Gross Margin % falls into.

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Index Oil & Gas Gross Margin % Calculation

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

Index Oil & Gas's Gross Margin for the fiscal year that ended in Mar. 2009 is calculated as

Gross Margin % (A: Mar. 2009 )	=	Gross Profit (A: Mar. 2009 )	/	Revenue (A: Mar. 2009 )
	=	2.1	/	2.829
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(2.829 - 0.704)	/	2.829
	=	75.11 %

Index Oil & Gas's Gross Margin for the quarter that ended in Mar. 2009 is calculated as

Gross Margin % (Q: Mar. 2009 )	=	Gross Profit (Q: Mar. 2009 )	/	Revenue (Q: Mar. 2009 )
	=	0.2	/	0.261
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(0.261 - 0.074)	/	0.261
	=	71.65 %

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 71.65% mean?

Index Oil & Gas (IXOG) has a Gross Margin % of 71.65% as of Mar. 2009. Gross margin is the ratio of total gross profit to net sales. View historical data on Index Oil & Gas and its competitors.

Is Index Oil & Gas' Gross Margin % too high?

Index Oil & Gas' current Gross Margin % is 71.65%. The Oil & Gas industry median Gross Margin % is 25.70. Index Oil & Gas' value of 71.65% is 178.8% above this industry median.

How does Index Oil & Gas' Gross Margin % compare to FPPP and UNGS?

Index Oil & Gas' Gross Margin % of 71.65% can be compared against companies in the Oil & Gas industry. The industry median Gross Margin % is 25.70. Index Oil & Gas' value of 71.65% is 178.8% above 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 an Oil & Gas company?

The median Gross Margin % among Oil & Gas companies is 25.70, based on 867 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. Index Oil & Gas's current Gross Margin % of 71.65% is 178.8% above 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 Index Oil & Gas and its competitors. For the Oil & Gas industry, the median Gross Margin % is 25.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Index Oil & Gas's current Gross Margin % is 71.65%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.

Is Index Oil & Gas stock overvalued right now?

Index Oil & Gas (IXOG) has a current Gross Margin % of 71.65%. The current Gross Margin % is 71.65% and 178.8% above the Oil & Gas industry median of 25.70. 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 Index Oil & Gas (IXOG), the current Gross Margin % is 71.65% as of Mar. 2009. 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.

Index Oil & Gas Business Description

Industry Energy Oil & Gas

Comparable Companies TSXV:PTP.H XCNQ:EI TSXV:CEN TSXV:TPC FPPP TSXV:WTR TSXV:STMP UNGS TSXV:PPE.H TSXV:CA.H TSXV:MMO.H TSXV:ROC.H TSXV:GX GBEYF SPOWF TSXV:CE.H TSXV:KLE.H TSXV:TZR TSXV:TIP.H TSXV:CTI.H

Address 10000 Memorial Drive, Suite 440, Houston, TX, USA, 77024

Website http://www.indexoil.com

Index Oil & Gas Inc is an independent oil and natural gas company engaged in the acquisition, exploration, development, production and sale of oil and natural gas properties. It focuses on prolific petroleum system of the onshore Gulf Coast of Texas and Louisiana.