SOLON AG fuer Solartechnik (LTS:0G3C) Gross Margin % : -13.39% (As of Sep. 2011)

SOLON AG fuer Solartechnik Gross Margin % Chart

SOLON AG fuer Solartechnik Quarterly Data
	Dec03	Dec04	Dec05	Dec06	Dec07	Dec08	Mar09	Jun09	Sep09	Dec09	Mar10	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11
Gross Margin %	Get a 7-Day Free Trial												17.36	22.27	12.58	14.64	-13.39

Competitive Comparison of SOLON AG fuer Solartechnik's Gross Margin %

For the Solar subindustry, SOLON AG fuer Solartechnik'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.

SOLON AG fuer Solartechnik's Gross Margin % Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, SOLON AG fuer Solartechnik's Gross Margin % distribution charts can be found below:

* The bar in red indicates where SOLON AG fuer Solartechnik's Gross Margin % falls into.

SOLON AG fuer Solartechnik Gross Margin % Calculation

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

SOLON AG fuer Solartechnik's Gross Margin for the fiscal year that ended in Dec. 2010 is calculated as

SOLON AG fuer Solartechnik's Gross Margin for the quarter that ended in Sep. 2011 is calculated as

* 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.

SOLON AG fuer Solartechnik  (LTS:0G3C) 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

SOLON AG fuer Solartechnik had a gross margin of -13.39% for the quarter that ended in Sep. 2011 => No sustainable 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.

SOLON AG fuer Solartechnik Gross Margin % Related Terms

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SOLON AG fuer Solartechnik (LTS:0G3C) Business Description