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ZaZa Energy (ZaZa Energy) Gross Margin %

: -14.26% (As of Jun. 2015)
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Gross Margin % is calculated as gross profit divided by its revenue. ZaZa Energy's Gross Profit for the three months ended in Jun. 2015 was $-0.15 Mil. ZaZa Energy's Revenue for the three months ended in Jun. 2015 was $1.07 Mil. Therefore, ZaZa Energy's Gross Margin % for the quarter that ended in Jun. 2015 was -14.26%.


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


ZAZA's Gross Margin % is not ranked *
in the Oil & Gas industry.
Industry Median: 27.87
* Ranked among companies with meaningful Gross Margin % only.

ZaZa Energy had a gross margin of -14.26% for the quarter that ended in Jun. 2015 => No sustainable competitive advantage

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


ZaZa Energy Gross Margin % Historical Data

The historical data trend for ZaZa Energy'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.

ZaZa Energy Annual Data
Trend Dec10 Dec11 Dec12 Dec13 Dec14
Gross Margin %
99.79 94.09 98.24 - -

ZaZa Energy Quarterly Data
Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15
Gross Margin % 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 Premium Member Only Premium Member Only Premium Member Only 95.75 - - - -14.26

Competitive Comparison

For the Oil & Gas E&P subindustry, ZaZa Energy'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.


ZaZa Energy Gross Margin % Distribution

For the Oil & Gas industry and Energy sector, ZaZa Energy's Gross Margin % distribution charts can be found below:

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



ZaZa Energy Gross Margin % Calculation

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

ZaZa Energy's Gross Margin for the fiscal year that ended in Dec. 2014 is calculated as

Gross Margin % (A: Dec. 2014 )=Gross Profit (A: Dec. 2014 ) / Revenue (A: Dec. 2014 )
=11.5 / 11.48
=(Revenue - Cost of Goods Sold) / Revenue
=(11.48 - 0) / 11.48
=N/A %

ZaZa Energy's Gross Margin for the quarter that ended in Jun. 2015 is calculated as


Gross Margin % (Q: Jun. 2015 )=Gross Profit (Q: Jun. 2015 ) / Revenue (Q: Jun. 2015 )
=-0.2 / 1.073
=(Revenue - Cost of Goods Sold) / Revenue
=(1.073 - 1.226) / 1.073
=-14.26 %

* 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.


ZaZa Energy  (GREY:ZAZA) 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

ZaZa Energy had a gross margin of -14.26% for the quarter that ended in Jun. 2015 => 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.


ZaZa Energy Gross Margin % Related Terms

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ZaZa Energy (ZaZa Energy) Business Description

Traded in Other Exchanges
N/A
Address
1301 McKinney Street, Suite 2800, Houston, TX, USA, 77010
ZaZa Energy Corp is an independent oil and gas company. The Company is focused on the exploration and production of unconventional and conventional oil and gas assets. It operates primarily through joint ventures in the Eagle Ford East trend in East Texas and the Eagle Ford trend in South Texas.

ZaZa Energy (ZaZa Energy) Headlines

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