RAM Active Media (LSE:RAM) Gross Margin % : 50.51% (As of Dec. 2012)

RAM Active Media Gross Margin % Chart

RAM Active Media Annual Data
	Trend	May03	May04	May05	May06	May07	May08	Dec09	Dec10	Dec11	Dec12
Gross Margin %		Get a 7-Day Free Trial					-	37.67	44.66	25.47	50.04

RAM Active Media Semi-Annual Data
	Nov02	May03	Nov03	May04	Nov04	May05	Nov05	May06	Nov06	May07	Nov07	May08	Jun09	Dec09	Jun10	Dec10	Jun11	Dec11	Jun12	Dec12
Gross Margin %	Get a 7-Day Free Trial															61.65	34.42	12.06	49.26	50.51

Competitive Comparison of RAM Active Media's Gross Margin %

For the Broadcasting subindustry, RAM Active Media'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.

RAM Active Media's Gross Margin % Distribution in the Media - Diversified Industry

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

* The bar in red indicates where RAM Active Media's Gross Margin % falls into.

RAM Active Media Gross Margin % Calculation

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

RAM Active Media's Gross Margin for the fiscal year that ended in Dec. 2012 is calculated as

RAM Active Media's Gross Margin for the quarter that ended in Dec. 2012 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.

RAM Active Media  (LSE:RAM) 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

RAM Active Media had a gross margin of 50.51% for the quarter that ended in Dec. 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.

RAM Active Media Gross Margin % Related Terms

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RAM Active Media (LSE:RAM) Business Description