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DigitalGlobe (DigitalGlobe) Gross Margin % : 69.12% (As of Jun. 2017)


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What is DigitalGlobe Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. DigitalGlobe's Gross Profit for the three months ended in Jun. 2017 was $156.0 Mil. DigitalGlobe's Revenue for the three months ended in Jun. 2017 was $225.7 Mil. Therefore, DigitalGlobe's Gross Margin % for the quarter that ended in Jun. 2017 was 69.12%.


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


DGI's Gross Margin % is not ranked *
in the Aerospace & Defense industry.
Industry Median: 26.025
* Ranked among companies with meaningful Gross Margin % only.

DigitalGlobe had a gross margin of 69.12% for the quarter that ended in Jun. 2017 => Durable competitive advantage

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


DigitalGlobe Gross Margin % Historical Data

The historical data trend for DigitalGlobe'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.

DigitalGlobe Gross Margin % Chart

DigitalGlobe Annual Data
Trend Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 80.64 71.39 75.21 79.37 77.34

DigitalGlobe Quarterly Data
Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17
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 Premium Member Only Premium Member Only 78.29 78.05 73.07 70.77 69.12

Competitive Comparison of DigitalGlobe's Gross Margin %

For the Aerospace & Defense subindustry, DigitalGlobe'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.


DigitalGlobe's Gross Margin % Distribution in the Aerospace & Defense Industry

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

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



DigitalGlobe Gross Margin % Calculation

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

DigitalGlobe's Gross Margin for the fiscal year that ended in Dec. 2016 is calculated as

Gross Margin % (A: Dec. 2016 )=Gross Profit (A: Dec. 2016 ) / Revenue (A: Dec. 2016 )
=561 / 725.4
=(Revenue - Cost of Goods Sold) / Revenue
=(725.4 - 164.4) / 725.4
=77.34 %

DigitalGlobe's Gross Margin for the quarter that ended in Jun. 2017 is calculated as


Gross Margin % (Q: Jun. 2017 )=Gross Profit (Q: Jun. 2017 ) / Revenue (Q: Jun. 2017 )
=156 / 225.7
=(Revenue - Cost of Goods Sold) / Revenue
=(225.7 - 69.7) / 225.7
=69.12 %

* 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.


DigitalGlobe  (NYSE:DGI) 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

DigitalGlobe had a gross margin of 69.12% for the quarter that ended in Jun. 2017 => 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.


DigitalGlobe Gross Margin % Related Terms

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


DigitalGlobe (DigitalGlobe) Business Description

Traded in Other Exchanges
N/A
Address
DigitalGlobe is one of the leading global providers of high-resolution Earth-imagery products and services. It owns satellites and utilizes other third-party image providers to produce the images. The content may be used in a multitude of industries, including defense, mapping, environmental, and oil and gas exploration, as well as for civil agencies. The company collects, processes, and distributes to customers around the world, and the imagery may be processed to customers' specifications. Products and services are sold through direct and indirect channels, consisting of a global network of resellers, strategic partners, direct enterprise sales, and online services. The U.S. government accounts for roughly two thirds of total revenue.
Executives
Warren Jenson director 30 FREDRICK AVE, ATHERTON CA 94027
Walter S. Scott officer: EVP and CTO 1300 WEST 120TH AVENUE, WESTMINSTER CO 80234
Daniel L Jablonsky officer: SVP, GC and Secretary 1300 WEST 120TH AVENUE, WESTMINSTER CO 80234
Howell M Estes director 1300 WEST 120TH AVENUE, WESTMINSTER CO 80234
Jeffrey R Tarr director, officer: President and CEO DIGITALGLOBE, INC., 1300 WEST 120TH AVENUE, WESTMINSTER CO 80234
Lawrence A Hough director 84 INVERNESS CIRCLE EAST ENGLEWOOD CO 80112
Eddy Zervigon director 1601 DRY CREEK DRIVE, SUITE 260, LONGMONT CO 80503
Mason L Roger Jr. director 1300 W 120TH AVENUE, WESTMINSTER CO 80234
Gary W Ferrera officer: EVP, Chief Financial Officer 3250 BRIARPARK, SUITE 400, HOUSTON TX 77042
Roxanne J Decyk director 2801 80TH STREET, KENOSHA WI 53143
Grover Wray officer: SVP, Chief HR Officer DIGITALGLOBE, INC., 1300 WEST 120TH AVENUE, WESTMINSTER CO 80234
Nick Cyprus director 1300 WEST 120TH AVENUE, WESTMINSTER CO 80234
Jose Torres officer: Chief Accounting Officer 1300 W. 120TH AVENUE, WESTMINSTER CO 80234
James M Whitehurst director IBM CORPORATION, ONE NEW ORCHARD RD, ARMONK NY 10504-1722
Nathan M. Troup other: VP, CAO & Controller 1601 DRY CREEK DRIVE STE. 260 LONGMONT CO 80503

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