National CineMedia (National CineMedia) Gross Margin % : 66.52% (As of Dec. 2023)

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What is National CineMedia Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. National CineMedia's Gross Profit for the three months ended in Dec. 2023 was $60.4 Mil. National CineMedia's Revenue for the three months ended in Dec. 2023 was $90.8 Mil. Therefore, National CineMedia's Gross Margin % for the quarter that ended in Dec. 2023 was 66.52%.

Warning Sign:

National CineMedia Inc gross margin has been in long-term decline. The average rate of decline per year is -7.8%.

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

NCMI' s Gross Margin % Range Over the Past 10 Years
Min: 32.9 Med: 69.88 Max: 72.88
Current: 51.45

During the past 13 years, the highest Gross Margin % of National CineMedia was 72.88%. The lowest was 32.90%. And the median was 69.88%.

NCMI's Gross Margin % is ranked better than
68.46% of 964 companies
in the Media - Diversified industry
Industry Median: 38.52 vs NCMI: 51.45

National CineMedia had a gross margin of 66.52% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for National CineMedia was -7.80% per year.

National CineMedia Gross Margin % Historical Data

The historical data trend for National CineMedia'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.

National CineMedia Gross Margin % Chart

National CineMedia Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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69.76

51.88

32.90

52.69

51.51

National CineMedia Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Gross Margin %	Get a 7-Day Free Trial															67.28	20.63	66.22	30.77	66.52

Competitive Comparison of National CineMedia's Gross Margin %

For the Advertising Agencies subindustry, National CineMedia'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.

National CineMedia's Gross Margin % Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, National CineMedia's Gross Margin % distribution charts can be found below:

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

National CineMedia Gross Margin % Calculation

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

National CineMedia's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )	=	Gross Profit (A: Dec. 2023 )	/	Revenue (A: Dec. 2023 )
	=	85.1	/	165.2
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(165.2 - 80.1)	/	165.2
	=	51.51 %

National CineMedia's Gross Margin for the quarter that ended in Dec. 2023 is calculated as

Gross Margin % (Q: Dec. 2023 )	=	Gross Profit (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	60.4	/	90.8
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(90.8 - 30.4)	/	90.8
	=	66.52 %

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.

National CineMedia (NAS:NCMI) 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

National CineMedia had a gross margin of 66.52% for the quarter that ended in Dec. 2023 => 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.

National CineMedia Gross Margin % Related Terms

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National CineMedia (National CineMedia) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » National CineMedia Inc (NAS:NCMI) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

6300 South Syracuse Way, Suite 300, Centennial, CO, USA, 80111

Website

https://www.ncm.com

National CineMedia Inc is a holding company that operates a digital in-theatre media network across North America. The company displays ads in movie theaters, online, and through mobile video. National CineMedia's most important operation is First Look, its prefeature programming that plays before a movie and related trailers start. The company also operates an online and mobile network in combination with movie theaters that include movie content, trailers, showtimes, and other features. The company derives revenue from the sale of advertising to national, regional and local businesses in Noovie show, cinema advertising and entertainment show seen on movie screens across the U.S.

Executives

Scott D Felenstein	officer: EVP and Chief Revenue Officer	C/O NATIONAL CINEMEDIA, INC., 6300 S. SYRACUSE WAY, SUITE 300, CENTENNIAL CO 80111
Ronnie Y. Ng	officer: Chief Financial Officer	C/O NATIONAL CINEMEDIA, INC., 6300 S SYRACUSE WAY, SUITE 300, CENTENNIAL CO 80111
Maria Vg Woods	officer: EVP, General Counsel	C/O NATIONAL CINEMEDIA, INC., 6300 S SYRACUSE WAY, SUITE 300, CENTENNIAL CO 80111
Blantyre Fund Iii (gp) Ltd	10 percent owner	UGLAND HOUSE, PO BOX 309, GEORGE TOWN, GRAND CAYMAN E9 KY1-1104
Joe Marchese	director	C/O CLEAR CHANNEL OUTDOOR HOLDINGS, INC., 4830 NORTH LOOP 1604W, SUITE 111, SAN ANTONIO TX 78249
Blantyre Capital Ltd	10 percent owner	C/O BLANTYRE CAPITAL LIMITED, 52 JERMYN STREET, LONDON X0 SW1Y 6LX
Jean-philippe Maheu	director	C/O NATIONAL CINEMEDIA, INC., 6300 S. SYRACUSE WAY, SUITE 300, CENTENNIAL CO 80111
Tiago Lourenco	director	C/O NATIONAL CINEMEDIA, INC., 6300 S. SYRACUSE WAY, SUITE 300, CENTENNIAL CO 80111
Nicholas Bell	director	C/O NATIONAL CINEMEDIA, INC., 6300 S. SYRACUSE WAY, SUITE 300, CENTENNIAL CO 80111
Bssf Ii Ireland Dac	10 percent owner	IVEAGH COURT, HARCOURT ROAD, 2ND FLOOR, BLOCK E, DUBLIN L2 2
Blantyre Fund Ii (gp) Ltd	10 percent owner	UGLAND HOUSE, PO BOX 309, GEORGE TOWN, GRAND CAYMAN E9 KY1-1104
Blantyre Mulanje Ii Gp Ltd	10 percent owner	UGLAND HOUSE, PO BOX 309, GEORGE TOWN, GRAND CAYMAN E9 KY1-1104
Iii Dac Bssf	10 percent owner	IVEAGH COURT, HARCOURT ROAD, 2ND FLOOR, BLOCK E, DUBLIN L2 2
Lauren Zalaznick	director	425 LEXINGTON AVENUE, (ATTN: ANDREA ANDREZO), NEW YORK NY 10017
Mubashir Mukadam	10 percent owner	C/O BLANTYRE CAPITAL LIMITED, 52 JERMYN STREET, LONDON X0 SW1Y 6LX