MCZAF (Mad Catz Interactive) Gross Margin %: 6.79% (As of Dec. 2016)

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What is Mad Catz Interactive Gross Margin %?

Mad Catz Interactive MCZAF -3.33% Gross Margin % is 6.79% as of Dec. 2016.

Gross Margin % is calculated as gross profit divided by its revenue. Mad Catz Interactive's Gross Profit for the three months ended in Dec. 2016 was $1.30 Mil. Mad Catz Interactive's Revenue for the three months ended in Dec. 2016 was $19.06 Mil. Therefore, Mad Catz Interactive's Gross Margin % for the quarter that ended in Dec. 2016 was 6.79%.


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


MCZAF's Gross Margin % is not ranked *
in the Hardware industry.
Industry Median: 24.5
* Ranked among companies with meaningful Gross Margin % only.

Mad Catz Interactive had a gross margin of 6.79% for the quarter that ended in Dec. 2016 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Mad Catz Interactive was 0.00% per year.


Mad Catz Interactive  (OTCPK:MCZAF) 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

Mad Catz Interactive had a gross margin of 6.79% for the quarter that ended in Dec. 2016 => No sustainable 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.


Mad Catz Interactive Gross Margin % Related Terms


Mad Catz Interactive Gross Margin % Historical Data

* Premium members only.

The historical data trend for Mad Catz Interactive'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.

Mad Catz Interactive Gross Margin % Chart

Mad Catz Interactive Annual Data
Trend Mar07 Mar08 Mar09 Mar10 Mar11 Mar12 Mar13 Mar14 Mar15 Mar16
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 26.80 28.14 25.55 27.65 16.72

Mad Catz Interactive Quarterly Data
Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 17.54 -5.09 -0.96 3.55 6.79

MCZAF vs ECRP: Gross Margin % Comparison

For the Computer Hardware subindustry, Mad Catz Interactive'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.


Mad Catz Interactive Gross Margin % vs Hardware Industry

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

* The bar in red indicates where Mad Catz Interactive's Gross Margin % falls into.



Mad Catz Interactive Gross Margin % Calculation

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

Mad Catz Interactive's Gross Margin for the fiscal year that ended in Mar. 2016 is calculated as

Gross Margin % (A: Mar. 2016 )=Gross Profit (A: Mar. 2016 ) / Revenue (A: Mar. 2016 )
=22.4 / 134.074
=(Revenue - Cost of Goods Sold) / Revenue
=(134.074 - 111.658) / 134.074
=16.72 %

Mad Catz Interactive's Gross Margin for the quarter that ended in Dec. 2016 is calculated as


Gross Margin % (Q: Dec. 2016 )=Gross Profit (Q: Dec. 2016 ) / Revenue (Q: Dec. 2016 )
=1.3 / 19.061
=(Revenue - Cost of Goods Sold) / Revenue
=(19.061 - 17.766) / 19.061
=6.79 %

* 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.

Frequently Asked Questions Learn more about Gross Margin % →
What does a Gross Margin % of 6.79% mean?
Mad Catz Interactive (MCZAF) has a Gross Margin % of 6.79% as of Dec. 2016. Gross margin is the ratio of total gross profit to net sales. View historical data on Mad Catz Interactive and its competitors.
Is Mad Catz Interactive's Gross Margin % too high?
Mad Catz Interactive's current Gross Margin % is 6.79%. The Hardware industry median Gross Margin % is 24.50. Mad Catz Interactive's value of 6.79% is 72.3% below this industry median.
How does Mad Catz Interactive's Gross Margin % compare to ECRP?
Mad Catz Interactive's Gross Margin % of 6.79% can be compared against companies in the Hardware industry. The industry median Gross Margin % is 24.50. Mad Catz Interactive's value of 6.79% is 72.3% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Hardware company?
The median Gross Margin % among Hardware companies is 24.50, based on 2,454 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Mad Catz Interactive's current Gross Margin % of 6.79% is 72.3% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Mad Catz Interactive and its competitors. For the Hardware industry, the median Gross Margin % is 24.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Mad Catz Interactive's current Gross Margin % is 6.79%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Mad Catz Interactive stock overvalued right now?
Mad Catz Interactive (MCZAF) has a current Gross Margin % of 6.79%. The current Gross Margin % is 6.79% and 72.3% below the Hardware industry median of 24.50. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Mad Catz Interactive (MCZAF), the current Gross Margin % is 6.79% as of Dec. 2016. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Mad Catz Interactive Business Description

Address 181 Bay Street, Suite 4400, Toronto, ON, CAN, M5J 2T3
Mad Catz Interactive Inc is a Canadian company which is engaged in designing, manufacturing, marketing and distributing interactive entertainment products marketed under Mad Catz (gaming), Tritton (audio), and Saitek (simulation) brands. The company's products include headsets, mice, keyboards, controllers, specialty controllers, and other accessories. It caters to gamers and simulation enthusiast across multiple platforms including in-home gaming consoles, handheld gaming consoles, PC (Personal Computers) and Mac computers, smartphones, tablets and other smart devices. The company distributes its products through various retailers around the globe. Mad Catz derives the majority of its revenue from Americas.