Eastern Security & Protection Services (Eastern Security & Protection Services) Gross Margin % : 63.57% (As of Jun. 2011)

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What is Eastern Security & Protection Services Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Eastern Security & Protection Services's Gross Profit for the three months ended in Jun. 2011 was $1.68 Mil. Eastern Security & Protection Services's Revenue for the three months ended in Jun. 2011 was $2.65 Mil. Therefore, Eastern Security & Protection Services's Gross Margin % for the quarter that ended in Jun. 2011 was 63.57%.

The historical rank and industry rank for Eastern Security & Protection Services's Gross Margin % or its related term are showing as below:

EAST's Gross Margin % is not ranked ^*
in the Business Services industry.
Industry Median: 34.65
* Ranked among companies with meaningful Gross Margin % only.

Eastern Security & Protection Services had a gross margin of 63.57% for the quarter that ended in Jun. 2011 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Eastern Security & Protection Services was 0.00% per year.

Eastern Security & Protection Services Gross Margin % Historical Data

The historical data trend for Eastern Security & Protection Services'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.

Eastern Security & Protection Services Gross Margin % Chart

Eastern Security & Protection Services Annual Data

Trend

Jun07

Jun08

Jun09

Jun10

Gross Margin %

37.50

44.68

64.04

37.04

Eastern Security & Protection Services Quarterly Data
	Jun07	Sep07	Dec07	Mar08	Jun08	Sep08	Dec08	Mar09	Jun09	Sep09	Dec09	Mar10	Jun10	Sep10	Dec10	Mar11	Jun11
Gross Margin %	Get a 7-Day Free Trial												-	-	-	46.56	63.57

Competitive Comparison of Eastern Security & Protection Services's Gross Margin %

For the Security & Protection Services subindustry, Eastern Security & Protection Services'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.

Eastern Security & Protection Services's Gross Margin % Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, Eastern Security & Protection Services's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Eastern Security & Protection Services's Gross Margin % falls into.

Eastern Security & Protection Services Gross Margin % Calculation

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

Eastern Security & Protection Services's Gross Margin for the fiscal year that ended in Jun. 2010 is calculated as

Gross Margin % (A: Jun. 2010 )	=	Gross Profit (A: Jun. 2010 )	/	Revenue (A: Jun. 2010 )
	=	0	/	0.027
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(0.027 - 0.017)	/	0.027
	=	37.04 %

Eastern Security & Protection Services's Gross Margin for the quarter that ended in Jun. 2011 is calculated as

Gross Margin % (Q: Jun. 2011 )	=	Gross Profit (Q: Jun. 2011 )	/	Revenue (Q: Jun. 2011 )
	=	1.7	/	2.646
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(2.646 - 0.964)	/	2.646
	=	63.57 %

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.

Eastern Security & Protection Services (OTCPK:EAST) 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

Eastern Security & Protection Services had a gross margin of 63.57% for the quarter that ended in Jun. 2011 => 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.

Eastern Security & Protection Services Gross Margin % Related Terms

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