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Infrasors Holdings (JSE:IRA) Gross Margin % : 18.32% (As of Feb. 2015)


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What is Infrasors Holdings Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Infrasors Holdings's Gross Profit for the six months ended in Feb. 2015 was R29.4 Mil. Infrasors Holdings's Revenue for the six months ended in Feb. 2015 was R160.2 Mil. Therefore, Infrasors Holdings's Gross Margin % for the quarter that ended in Feb. 2015 was 18.32%.

Warning Sign:

Infrasors Holdings Ltd gross margin has been in long term decline. The average rate of decline per year is -9.5%.


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

JSE:IRA' s Gross Margin % Range Over the Past 10 Years
Min: 11.75   Med: 26.5   Max: 41.93
Current: 19.05


During the past 8 years, the highest Gross Margin % of Infrasors Holdings was 41.93%. The lowest was 11.75%. And the median was 26.50%.

JSE:IRA's Gross Margin % is not ranked
in the Metals & Mining industry.
Industry Median: 19.17 vs JSE:IRA: 19.05

Infrasors Holdings had a gross margin of 18.32% for the quarter that ended in Feb. 2015 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Infrasors Holdings was -9.50% per year.


Infrasors Holdings Gross Margin % Historical Data

The historical data trend for Infrasors Holdings'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.

Infrasors Holdings Gross Margin % Chart

Infrasors Holdings Annual Data
Trend Feb08 Feb09 Feb10 Feb11 Feb12 Feb13 Feb14 Feb15
Gross Margin %
Get a 7-Day Free Trial 29.26 21.36 11.75 23.74 19.05

Infrasors Holdings Semi-Annual Data
Feb08 Feb09 Feb10 Aug10 Feb11 Aug11 Feb12 Aug12 Feb13 Aug13 Feb14 Aug14 Feb15
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.21 29.26 18.11 19.72 18.32

Competitive Comparison of Infrasors Holdings's Gross Margin %

For the Other Industrial Metals & Mining subindustry, Infrasors Holdings'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.


Infrasors Holdings's Gross Margin % Distribution in the Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, Infrasors Holdings's Gross Margin % distribution charts can be found below:

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



Infrasors Holdings Gross Margin % Calculation

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

Infrasors Holdings's Gross Margin for the fiscal year that ended in Feb. 2015 is calculated as

Gross Margin % (A: Feb. 2015 )=Gross Profit (A: Feb. 2015 ) / Revenue (A: Feb. 2015 )
=64.3 / 337.274
=(Revenue - Cost of Goods Sold) / Revenue
=(337.274 - 273.01) / 337.274
=19.05 %

Infrasors Holdings's Gross Margin for the quarter that ended in Feb. 2015 is calculated as


Gross Margin % (Q: Feb. 2015 )=Gross Profit (Q: Feb. 2015 ) / Revenue (Q: Feb. 2015 )
=29.4 / 160.247
=(Revenue - Cost of Goods Sold) / Revenue
=(160.247 - 130.885) / 160.247
=18.32 %

* 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.


Infrasors Holdings  (JSE:IRA) 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

Infrasors Holdings had a gross margin of 18.32% for the quarter that ended in Feb. 2015 => 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.


Infrasors Holdings Gross Margin % Related Terms

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Infrasors Holdings (JSE:IRA) Business Description

Traded in Other Exchanges
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Address

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