Gross Margin % is calculated as gross profit divided by its revenue. Ovivo's Gross Profit for the
three
months ended in Jun. 2016 was $14.6 Mil. Ovivo's Revenue for the
three
months ended in Jun. 2016 was $63.5 Mil. Therefore, Ovivo's Gross Margin % for the quarter that ended in Jun. 2016 was 23.06%.
The historical rank and industry rank for Ovivo's Gross Margin % or its related term are showing as below:
LVGAF's Gross Margin % is not ranked *
in the Industrial Products industry.
Industry Median: 26.485 * Ranked among companies with meaningful Gross Margin % only.
Ovivo had a gross margin of 23.06% for the quarter that ended in Jun. 2016 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Ovivo was 0.00% per year.
Ovivo Gross Margin % Historical Data
The historical data trend for Ovivo'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.
For the Pollution & Treatment Controls subindustry, Ovivo'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.
Ovivo's Gross Margin % Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, Ovivo's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Ovivo's Gross Margin % falls into.
* 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.
Ovivo (OTCPK:LVGAF) 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
Ovivo had a gross margin of 23.06% for the quarter that ended in Jun. 2016 => 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.
Ovivo Gross Margin % Related Terms
Thank you for viewing the detailed overview of Ovivo's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Ovivo Inc was incorporated in May 15, 2007 in Canada. The Company is a provider of technological solutions used in water treatment well as in pulp and paper production. The Corporation operates in more than 25 countries. The Company and its subsidiaries conduct their activities in two main groups: Ovivo and GL&V Pulp and Paper. The Water Treatment Group (Ovivo) designs and markets treatment and recycling solutions and components for municipal and industrial wastewater as well as water used in various industrial processes. The Group also develops seawater desalination technologies and offers water intake screening solutions for power stations, refineries and water desalination facilities. With its technological portfolio, it is positioned to provide comprehensive solutions for the filtration, clarification, treatment and purification of water to be returned into the environment, re-used in various industrial processes or used for domestic purposes. The pulp and paper Group designs and markets equipment used in various stages of paper production, from pulp preparation to sheet formation and finishing. It also serves with rebuilding, upgrading and optimization services for existing equipment, as well as the sale of replacement parts. The Company operates in following geographic segment: United States, Canada, United Kingdom, Other - Europe and Russia, Asia and Asia-Pacific, Middle East and Africa & Latin America.
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