Market Cap : 8.77 M | Enterprise Value : 8.64 M | P/E (TTM) : | P/B : |
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Gross Margin % is calculated as gross profit divided by its revenue. iCo Therapeutics's Gross Profit for the three months ended in Sep. 2020 was $0.00 Mil. iCo Therapeutics's Revenue for the three months ended in Sep. 2020 was $0.00 Mil. Therefore, iCo Therapeutics's Gross Margin % for the quarter that ended in Sep. 2020 was 0.00%. If there's no value for Cost of Goods Sold, then Gross Margin % is not calculated.
iCo Therapeutics had a gross margin of N/A% for the quarter that ended in Sep. 2020 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for iCo Therapeutics was 0.00% per year.
* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.
* The bar in red indicates where iCo Therapeutics's Gross Margin % falls into.
Gross Margin is the percentage of Gross Profit out of sales or Revenue. (Note that if there's no value for Cost of Goods Sold, then Gross Margin % is not calculated.)
iCo Therapeutics's Gross Margin for the fiscal year that ended in Dec. 2019 is calculated as
Gross Margin % (A: Dec. 2019 ) | = | Gross Profit (A: Dec. 2019 ) | / | Revenue (A: Dec. 2019 ) |
= | 0 | / | 0 | |
= | (Revenue - Cost of Goods Sold) | / | Revenue | |
= | (0 - 0) | / | 0 | |
= | N/A % |
iCo Therapeutics's Gross Margin for the quarter that ended in Sep. 2020 is calculated as
Gross Margin % (Q: Sep. 2020 ) | = | Gross Profit (Q: Sep. 2020 ) | / | Revenue (Q: Sep. 2020 ) |
= | 0 | / | 0 | |
= | (Revenue - Cost of Goods Sold) | / | Revenue | |
= | (0 - 0) | / | 0 | |
= | N/A % |
* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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
iCo Therapeutics had a gross margin of N/A% for the quarter that ended in Sep. 2020 => No sustainable competitive advantage
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.
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