WG Wearne (JSE:WEA) Gross Margin % : 25.43% (As of Aug. 2017)

WG Wearne Gross Margin % Chart

WG Wearne Annual Data
	Trend	Feb08	Feb09	Feb10	Feb11	Feb12	Feb13	Feb14	Feb15	Feb16	Feb17
Gross Margin %		Get a 7-Day Free Trial					21.13	19.83	20.53	21.12	10.73

WG Wearne Semi-Annual Data
	Feb08	Aug08	Feb09	Aug09	Feb10	Aug10	Feb11	Aug11	Feb12	Aug12	Feb13	Aug13	Feb14	Aug14	Feb15	Aug15	Feb16	Aug16	Feb17	Aug17
Gross Margin %	Get a 7-Day Free Trial															20.58	21.73	25.27	-4.45	25.43

Competitive Comparison of WG Wearne's Gross Margin %

For the Building Materials subindustry, WG Wearne'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.

WG Wearne's Gross Margin % Distribution in the Building Materials Industry

For the Building Materials industry and Basic Materials sector, WG Wearne's Gross Margin % distribution charts can be found below:

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

WG Wearne Gross Margin % Calculation

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

WG Wearne's Gross Margin for the fiscal year that ended in Feb. 2017 is calculated as

WG Wearne's Gross Margin for the quarter that ended in Aug. 2017 is calculated as

* 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.

WG Wearne  (JSE:WEA) 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

WG Wearne had a gross margin of 25.43% for the quarter that ended in Aug. 2017 => 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.

WG Wearne Gross Margin % Related Terms

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WG Wearne (JSE:WEA) Business Description