WDKA (Panache Beverage) Gross Margin %: 25.15% (As of Jun. 2014)

What is Panache Beverage Gross Margin %?

Panache Beverage WDKA Gross Margin % is 25.15% as of Jun. 2014.

Gross Margin % is calculated as gross profit divided by its revenue. Panache Beverage's Gross Profit for the three months ended in Jun. 2014 was $0.17 Mil. Panache Beverage's Revenue for the three months ended in Jun. 2014 was $0.66 Mil. Therefore, Panache Beverage's Gross Margin % for the quarter that ended in Jun. 2014 was 25.15%.

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

WDKA's Gross Margin % is not ranked ^*
in the Beverages - Alcoholic industry.
Industry Median: 42.29
* Ranked among companies with meaningful Gross Margin % only.

Panache Beverage had a gross margin of 25.15% for the quarter that ended in Jun. 2014 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Panache Beverage was 0.00% per year.

Panache Beverage (OTCPK:WDKA) 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

Panache Beverage had a gross margin of 25.15% for the quarter that ended in Jun. 2014 => 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.

Panache Beverage Gross Margin % Related Terms

Panache Beverage Gross Margin % Historical Data

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The historical data trend for Panache Beverage'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.

Panache Beverage Gross Margin % Chart

Panache Beverage Annual Data

Trend

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Gross Margin %

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37.50

38.42

25.59

35.31

31.32

Panache Beverage Quarterly Data
	Sep09	Dec09	Mar10	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14
Gross Margin %	Get a 7-Day Free Trial															40.00	4.58	2.94	18.74	25.15

WDKA vs CMHZ, BORNY, THST: Gross Margin % Comparison

For the Beverages - Wineries & Distilleries subindustry, Panache Beverage'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.

Panache Beverage Gross Margin % vs Beverages - Alcoholic Industry

For the Beverages - Alcoholic industry and Consumer Defensive sector, Panache Beverage's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Panache Beverage's Gross Margin % falls into.

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Panache Beverage Gross Margin % Calculation

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

Panache Beverage's Gross Margin for the fiscal year that ended in Dec. 2013 is calculated as

Gross Margin % (A: Dec. 2013 )	=	Gross Profit (A: Dec. 2013 )	/	Revenue (A: Dec. 2013 )
	=	1.2	/	3.694
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(3.694 - 2.537)	/	3.694
	=	31.32 %

Panache Beverage's Gross Margin for the quarter that ended in Jun. 2014 is calculated as

Gross Margin % (Q: Jun. 2014 )	=	Gross Profit (Q: Jun. 2014 )	/	Revenue (Q: Jun. 2014 )
	=	0.2	/	0.656
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(0.656 - 0.491)	/	0.656
	=	25.15 %

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 25.15% mean?

Panache Beverage (WDKA) has a Gross Margin % of 25.15% as of Jun. 2014. Gross margin is the ratio of total gross profit to net sales. View historical data on Panache Beverage and its competitors.

Is Panache Beverage's Gross Margin % too high?

Panache Beverage's current Gross Margin % is 25.15%. The Beverages - Alcoholic industry median Gross Margin % is 42.29. Panache Beverage's value of 25.15% is 40.5% below this industry median.

How does Panache Beverage's Gross Margin % compare to CMHZ and BORNY?

Panache Beverage's Gross Margin % of 25.15% can be compared against companies in the Beverages - Alcoholic industry. The industry median Gross Margin % is 42.29. Panache Beverage's value of 25.15% is 40.5% 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 Beverages - Alcoholic company?

The median Gross Margin % among Beverages - Alcoholic companies is 42.29, based on 205 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. Panache Beverage's current Gross Margin % of 25.15% is 40.5% 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 Panache Beverage and its competitors. For the Beverages - Alcoholic industry, the median Gross Margin % is 42.29 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Panache Beverage's current Gross Margin % is 25.15%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.

Is Panache Beverage stock overvalued right now?

Panache Beverage (WDKA) has a current Gross Margin % of 25.15%. The current Gross Margin % is 25.15% and 40.5% below the Beverages - Alcoholic industry median of 42.29. 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 Panache Beverage (WDKA), the current Gross Margin % is 25.15% as of Jun. 2014. 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.

Panache Beverage Business Description

Industry Consumer Defensive Beverages - Alcoholic

Comparable Companies BOM:531635 WAR:TLV CMHZ BOM:507498 NSE:RKDL BORNY XSAT:UMIDA B ASX:DW8 XCNQ:SBD NSE:AURDIS SGX:BKV BOM:542628 THST ICNB XKLS:5188 BOM:530305 OSTO:MACK B HKSE:08301 XMAD:BIL BOM:507155

Address 150 Fifth Avenue, 3rd Floor, New York, NY, USA, 10011

Website http://www.panachespirits.com

Panache Beverage Inc operates in the beverages industry in the United States. The company is engaged in the manufacturing of vodka.