Prime Focus London (LSE:PFO) Gross Margin % : 98.64% (As of Mar. 2013)

Prime Focus London Gross Margin % Chart

Prime Focus London Annual Data
	Trend	Aug03	Aug04	Aug05	Aug06	Mar08	Mar09	Mar10	Mar11	Mar12	Mar13
Gross Margin %		Get a 7-Day Free Trial					89.34	88.79	61.15	76.73	83.61

Prime Focus London Semi-Annual Data
	Feb03	Aug03	Feb04	Aug04	Feb05	Aug05	Feb06	Aug06	Sep07	Mar08	Sep08	Mar09	Sep09	Mar10	Sep10	Mar11	Sep11	Mar12	Sep12	Mar13
Gross Margin %	Get a 7-Day Free Trial															49.29	75.54	78.97	75.96	98.64

Competitive Comparison of Prime Focus London's Gross Margin %

For the Broadcasting subindustry, Prime Focus London'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.

Prime Focus London's Gross Margin % Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Prime Focus London's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Prime Focus London's Gross Margin % falls into.

Prime Focus London Gross Margin % Calculation

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

Prime Focus London's Gross Margin for the fiscal year that ended in Mar. 2013 is calculated as

Prime Focus London's Gross Margin for the quarter that ended in Mar. 2013 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.

Prime Focus London  (LSE:PFO) 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

Prime Focus London had a gross margin of 98.64% for the quarter that ended in Mar. 2013 => 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.

Prime Focus London Gross Margin % Related Terms

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Prime Focus London (LSE:PFO) Business Description