* 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.
Competitive Comparison of Leap Wireless International,'s Gross Profit
For the Telecom Services subindustry, Leap Wireless International,'s Gross Profit, along with its competitors' market caps and Gross Profit 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.
Leap Wireless International,'s Gross Profit Distribution in the Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Leap Wireless International,'s Gross Profit distribution charts can be found below:
* The bar in red indicates where Leap Wireless International,'s Gross Profit falls into.
Gross Profit for the trailing twelve months (TTM) ended in Dec. 2013 adds up the quarterly data reported by the company within the most recent 12 months, which was €774 Mil.
Gross Profit is the numerator in the calculation of Gross Margin.
* 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.
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
Leap Wireless International, had a gross margin of 29.80% for the quarter that ended in Dec. 2013 => Competition eroding margins
Leap Wireless International, Gross Profit Related Terms
Thank you for viewing the detailed overview of Leap Wireless International,'s Gross Profit provided by GuruFocus.com. Please click on the following links to see related term pages.
Leap Wireless International, (FRA:LWI) Business Description
Leap Wireless International, Inc., was formed as a Delaware corporation in 1998. The Company is a wireless communications carrier that offers digital wireless services in the U.S. under the 'Cricket' brand. Its Cricket service offerings provide customers with unlimited nationwide wireless services for a flat rate without requiring a fixed-term contract or a credit check. Cricket service is offered by Cricket, a wholly-owned subsidiary of Leap. As of December 31, 2012, Cricket service was offered in 48 states and the District of Columbia across an extended area covering approximately 292 million POPs. As of December 31, 2012, it had approximately 5.3 million customers, and it owned wireless licenses covering an aggregate of approximately 136.7 million POPs (adjusted to eliminate duplication from overlapping licenses). The combined network footprint in its operating markets covered approximately96.2 million POPs as of December 31, 2012. The licenses it own provide an average of 23 MHz of coverage in its operating markets. The Company has entered into roaming relationships with other wireless carriers that enable it to offer Cricket customers nationwide voice and data roaming services over an extended service area. It recently entered into an agreement with a national carrier for 4G LTE roaming services. In addition, it has also entered into a wholesale agreement, which it use to offer Cricket services in nationwide retailers outside of its current network footprint, and it recently amended that agreement to enable its customers to receive 4G LTE services. The service plans it currently offers are 'all-inclusive,' with telecommunication taxes and certain fees included within the service plan price. The Company competes with national facilities-based wireless providers and their prepaid affiliates or brands, local and regional carriers, non-facilities-based mobile virtual network operators, or MVNOs, voice-over-internet-protocol service providers and traditional landline service providers, including cable companies. Leap is a U.S. registered trademark and the Leap logo is a trademark of Leap. The Company's operations are subject to various other laws and regulations, including those regulations promulgated by the Federal Trade Commission, the Federal Aviation Administration, the Environmental Protection Agency, the Occupational Safety and Health Administration, other federal agencies and state and local regulatory agencies and legislative bodies.
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