GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Independent Power Producers » Ormat Industries Ltd (XTAE:ORMT) » Definitions » Gross Margin %

Ormat Industries (XTAE:ORMT) Gross Margin % : 39.56% (As of Sep. 2014)


View and export this data going back to . Start your Free Trial

What is Ormat Industries Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Ormat Industries's Gross Profit for the three months ended in Sep. 2014 was ₪205 Mil. Ormat Industries's Revenue for the three months ended in Sep. 2014 was ₪519 Mil. Therefore, Ormat Industries's Gross Margin % for the quarter that ended in Sep. 2014 was 39.56%.


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


XTAE:ORMT's Gross Margin % is not ranked *
in the Utilities - Independent Power Producers industry.
Industry Median: 35.46
* Ranked among companies with meaningful Gross Margin % only.

Ormat Industries had a gross margin of 39.56% for the quarter that ended in Sep. 2014 => Competition eroding margins

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

Ormat Industries Gross Margin % Historical Data

The historical data trend for Ormat Industries'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.

* Premium members only.

Ormat Industries Gross Margin % Chart

Ormat Industries Annual Data
Trend Dec08 Dec09 Dec10 Dec11 Dec12 Dec13
Gross Margin %
Get a 7-Day Free Trial 29.24 20.80 26.75 25.71 29.97

Ormat Industries Quarterly Data
Mar10 Jun10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14
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 30.41 32.77 37.53 31.31 39.56

Competitive Comparison of Ormat Industries's Gross Margin %

For the Utilities - Independent Power Producers subindustry, Ormat Industries'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.

Ormat Industries's Gross Margin % Distribution in the Utilities - Independent Power Producers Industry

For the Utilities - Independent Power Producers industry and Utilities sector, Ormat Industries's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Ormat Industries's Gross Margin % falls into.


Ormat Industries Gross Margin % Calculation

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

Ormat Industries'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 )
=591.7 / 1974.18
=(Revenue - Cost of Goods Sold) / Revenue
=(1974.18 - 1382.495) / 1974.18
=29.97 %

Ormat Industries's Gross Margin for the quarter that ended in Sep. 2014 is calculated as


Gross Margin % (Q: Sep. 2014 )=Gross Profit (Q: Sep. 2014 ) / Revenue (Q: Sep. 2014 )
=205.4 / 519.21
=(Revenue - Cost of Goods Sold) / Revenue
=(519.21 - 313.828) / 519.21
=39.56 %

* 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.

Ormat Industries  (XTAE:ORMT) 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

Ormat Industries had a gross margin of 39.56% for the quarter that ended in Sep. 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.

Ormat Industries Gross Margin % Related Terms

Thank you for viewing the detailed overview of Ormat Industries's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.

Ormat Industries (XTAE:ORMT) Headlines

No Headlines