Longfin (Longfin) Gross Margin % : 1.58% (As of Jun. 2018)

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What is Longfin Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Longfin's Gross Profit for the three months ended in Jun. 2018 was $0.63 Mil. Longfin's Revenue for the three months ended in Jun. 2018 was $39.88 Mil. Therefore, Longfin's Gross Margin % for the quarter that ended in Jun. 2018 was 1.58%.

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

LFIN's Gross Margin % is not ranked ^*
in the Software industry.
Industry Median: 41.79
* Ranked among companies with meaningful Gross Margin % only.

Longfin had a gross margin of 1.58% for the quarter that ended in Jun. 2018 => No sustainable competitive advantage

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

Longfin Gross Margin % Historical Data

The historical data trend for Longfin'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.

Longfin Gross Margin % Chart

Longfin Annual Data

Trend

Dec17

Gross Margin %

Longfin Quarterly Data
	Feb17	Jun17	Sep17	Dec17	Mar18	Jun18
Gross Margin %	Get a 7-Day Free Trial			9.50	-	-	3.78	1.58

Competitive Comparison of Longfin's Gross Margin %

For the Software - Application subindustry, Longfin'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.

Longfin's Gross Margin % Distribution in the Software Industry

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

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

Longfin Gross Margin % Calculation

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

Longfin's Gross Margin for the fiscal year that ended in Dec. 2017 is calculated as

Gross Margin % (A: Dec. 2017 )	=	Gross Profit (A: Dec. 2017 )	/	Revenue (A: Dec. 2017 )
	=	0	/	0
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(0 - 0)	/	0
	=	N/A %

Longfin's Gross Margin for the quarter that ended in Jun. 2018 is calculated as

Gross Margin % (Q: Jun. 2018 )	=	Gross Profit (Q: Jun. 2018 )	/	Revenue (Q: Jun. 2018 )
	=	0.6	/	39.882
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(39.882 - 39.253)	/	39.882
	=	1.58 %

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.

Longfin (OTCPK:LFIN) 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

Longfin had a gross margin of 1.58% for the quarter that ended in Jun. 2018 => 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.

Longfin Gross Margin % Related Terms

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Longfin (Longfin) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Longfin Corp (OTCPK:LFIN) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

16-017, 85 Broad Street, New York, NY, USA, 10004

Website

http://www.longfincorp.com

Longfin Corp is a US-based finance and technology company. It specializes in providing structured trade finance solutions and physical commodities finance solutions for finance houses and trading platforms for North America, South America, and Africa regions. The core business activity of the company is to provide Financing and FX services to importers and exporters. The services provided by the company includes importer and exporters financing, trade insurance-backed financing, financial institution intermediation, risk management engine and other.