HiWave Technologies (LSE:HIW) Gross Margin % : 60.70% (As of Sep. 2012)

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What is HiWave Technologies Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. HiWave Technologies's Gross Profit for the six months ended in Sep. 2012 was £0.38 Mil. HiWave Technologies's Revenue for the six months ended in Sep. 2012 was £0.63 Mil. Therefore, HiWave Technologies's Gross Margin % for the quarter that ended in Sep. 2012 was 60.70%.

Warning Sign:

HiWave Technologies PLC gross margin has been in long term decline. The average rate of decline per year is -8.8%.

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

LSE:HIW' s Gross Margin % Range Over the Past 10 Years
Min: 16.8 Med: 69.6 Max: 100
Current: 65.6

During the past 13 years, the highest Gross Margin % of HiWave Technologies was 100.00%. The lowest was 16.80%. And the median was 69.60%.

LSE:HIW's Gross Margin % is not ranked
in the Hardware industry.
Industry Median: 24.455 vs LSE:HIW: 65.60

HiWave Technologies had a gross margin of 60.70% for the quarter that ended in Sep. 2012 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for HiWave Technologies was -8.80% per year.

HiWave Technologies Gross Margin % Historical Data

The historical data trend for HiWave Technologies'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.

HiWave Technologies Gross Margin % Chart

HiWave Technologies Annual Data

Trend

Jun03

Jun04

Jun05

Jun06

Jun07

Jun08

Jun09

Jun10

Sep11

Sep12

Gross Margin %

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97.24

94.06

69.56

65.63

HiWave Technologies Semi-Annual Data
	Dec02	Jun03	Dec03	Jun04	Dec04	Jun05	Dec05	Jun06	Dec06	Jun07	Dec07	Jun08	Dec08	Jun09	Dec09	Jun10	Dec10	Jun11	Mar12	Sep12
Gross Margin %	Get a 7-Day Free Trial															92.46	78.14	71.13	70.88	60.70

Competitive Comparison of HiWave Technologies's Gross Margin %

For the Electronic Components subindustry, HiWave Technologies'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.

HiWave Technologies's Gross Margin % Distribution in the Hardware Industry

For the Hardware industry and Technology sector, HiWave Technologies's Gross Margin % distribution charts can be found below:

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

HiWave Technologies Gross Margin % Calculation

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

HiWave Technologies's Gross Margin for the fiscal year that ended in Sep. 2012 is calculated as

Gross Margin % (A: Sep. 2012 )	=	Gross Profit (A: Sep. 2012 )	/	Revenue (A: Sep. 2012 )
	=	0.8	/	1.225
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(1.225 - 0.421)	/	1.225
	=	65.63 %

HiWave Technologies's Gross Margin for the quarter that ended in Sep. 2012 is calculated as

Gross Margin % (Q: Sep. 2012 )	=	Gross Profit (Q: Sep. 2012 )	/	Revenue (Q: Sep. 2012 )
	=	0.4	/	0.631
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(0.631 - 0.248)	/	0.631
	=	60.70 %

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.

HiWave Technologies (LSE:HIW) 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

HiWave Technologies had a gross margin of 60.70% for the quarter that ended in Sep. 2012 => 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.

HiWave Technologies Gross Margin % Related Terms

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