OPST (OPT Sciences) Gross Margin %: 44.30% (As of Jul. 2015)

OPT Sciences  (OTCPK:OPST) 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

OPT Sciences had a gross margin of 44.30% for the quarter that ended in Jul. 2015 => 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.

OPT Sciences Gross Margin % Related Terms

The historical data trend for OPT Sciences'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.

OPT Sciences Gross Margin % Chart

OPT Sciences Annual Data
	Trend	Oct05	Oct06	Oct07	Oct08	Oct09	Oct10	Oct11	Oct12	Oct13	Oct14
Gross Margin %		Get a 7-Day Free Trial					29.71	33.07	30.27	36.43	34.82

OPT Sciences Quarterly Data
	Oct10	Jan11	Apr11	Jul11	Oct11	Jan12	Apr12	Jul12	Oct12	Jan13	Apr13	Jul13	Oct13	Jan14	Apr14	Jul14	Oct14	Jan15	Apr15	Jul15
Gross Margin %	Get a 7-Day Free Trial															32.52	42.03	35.75	46.89	44.30

OPST vs SDEV, SIF, OPXS: Gross Margin % Comparison

For the Aerospace & Defense subindustry, OPT Sciences'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.

OPT Sciences Gross Margin % vs Aerospace & Defense Industry

For the Aerospace & Defense industry and Industrials sector, OPT Sciences's Gross Margin % distribution charts can be found below:

* The bar in red indicates where OPT Sciences's Gross Margin % falls into.

OPT Sciences Gross Margin % Calculation

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

OPT Sciences's Gross Margin for the fiscal year that ended in Oct. 2014 is calculated as

OPT Sciences's Gross Margin for the quarter that ended in Jul. 2015 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.

OPT Sciences Business Description