Peoples Educational Holdings (Peoples Educational Holdings) Gross Margin % : -40.37% (As of May. 2012)

Peoples Educational Holdings Gross Margin % Chart

Peoples Educational Holdings Annual Data
	Trend	Dec02	Dec03	Dec04	Dec05	May07	May08	May09	May10	May11	May12
Gross Margin %		Get a 7-Day Free Trial					40.08	37.79	41.67	40.83	19.54

Peoples Educational Holdings Quarterly Data
	Aug07	Nov07	Feb08	May08	Aug08	Nov08	Feb09	May09	Aug09	Nov09	Feb10	May10	Aug10	Nov10	Feb11	May11	Aug11	Nov11	Feb12	May12
Gross Margin %	Get a 7-Day Free Trial															41.17	37.02	33.73	32.63	-40.37

Competitive Comparison of Peoples Educational Holdings's Gross Margin %

For the Publishing subindustry, Peoples Educational Holdings'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.

Peoples Educational Holdings's Gross Margin % Distribution in the Media - Diversified Industry

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

* The bar in red indicates where Peoples Educational Holdings's Gross Margin % falls into.

Peoples Educational Holdings Gross Margin % Calculation

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

Peoples Educational Holdings's Gross Margin for the fiscal year that ended in May. 2012 is calculated as

Peoples Educational Holdings's Gross Margin for the quarter that ended in May. 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.

Peoples Educational Holdings  (OTCPK:PEDH) 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

Peoples Educational Holdings had a gross margin of -40.37% for the quarter that ended in May. 2012 => 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.

Peoples Educational Holdings Gross Margin % Related Terms

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Peoples Educational Holdings (Peoples Educational Holdings) Business Description