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Infinis Energy (LSE:INFI) Gross Margin % : 39.33% (As of Sep. 2015)


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What is Infinis Energy Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Infinis Energy's Gross Profit for the six months ended in Sep. 2015 was £40.4 Mil. Infinis Energy's Revenue for the six months ended in Sep. 2015 was £102.7 Mil. Therefore, Infinis Energy's Gross Margin % for the quarter that ended in Sep. 2015 was 39.33%.


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

LSE:INFI' s Gross Margin % Range Over the Past 10 Years
Min: 44.7   Med: 45.01   Max: 45.79
Current: 44.97


During the past 5 years, the highest Gross Margin % of Infinis Energy was 45.79%. The lowest was 44.70%. And the median was 45.01%.

LSE:INFI's Gross Margin % is not ranked
in the Utilities - Regulated industry.
Industry Median: 29.64 vs LSE:INFI: 44.97

Infinis Energy had a gross margin of 39.33% for the quarter that ended in Sep. 2015 => Competition eroding margins

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


Infinis Energy Gross Margin % Historical Data

The historical data trend for Infinis Energy'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.

Infinis Energy Gross Margin % Chart

Infinis Energy Annual Data
Trend Mar11 Mar12 Mar13 Mar14 Mar15
Gross Margin %
45.26 44.70 45.01 45.79 44.79

Infinis Energy Semi-Annual Data
Mar11 Mar12 Sep12 Mar13 Sep13 Mar14 Sep14 Mar15 Sep15
Gross Margin % Get a 7-Day Free Trial Premium Member Only 41.22 49.53 38.85 49.47 39.33

Competitive Comparison of Infinis Energy's Gross Margin %

For the Utilities - Diversified subindustry, Infinis Energy'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.


Infinis Energy's Gross Margin % Distribution in the Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, Infinis Energy's Gross Margin % distribution charts can be found below:

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



Infinis Energy Gross Margin % Calculation

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

Infinis Energy's Gross Margin for the fiscal year that ended in Mar. 2015 is calculated as

Gross Margin % (A: Mar. 2015 )=Gross Profit (A: Mar. 2015 ) / Revenue (A: Mar. 2015 )
=105.7 / 235.981
=(Revenue - Cost of Goods Sold) / Revenue
=(235.981 - 130.283) / 235.981
=44.79 %

Infinis Energy's Gross Margin for the quarter that ended in Sep. 2015 is calculated as


Gross Margin % (Q: Sep. 2015 )=Gross Profit (Q: Sep. 2015 ) / Revenue (Q: Sep. 2015 )
=40.4 / 102.685
=(Revenue - Cost of Goods Sold) / Revenue
=(102.685 - 62.294) / 102.685
=39.33 %

* 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.


Infinis Energy  (LSE:INFI) 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

Infinis Energy had a gross margin of 39.33% for the quarter that ended in Sep. 2015 => 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.


Infinis Energy Gross Margin % Related Terms

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Infinis Energy (LSE:INFI) Business Description

Traded in Other Exchanges
N/A
Address
Infinis Energy PLC was incorporated on October 2, 2013. The Company is a renewable energy producer. It is engaged in developing, constructing and operating renewable power plants. It operates power generating plants in United Kingdom with a total installed capacity of 610 MW. The Company has three main divisions: the landfill gas business, the onshore wind business and the hydro business.

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