Eurasia Drilling Co (LSE:EDCL) Gross Margin % : 21.28% (As of Jun. 2015)

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What is Eurasia Drilling Co Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Eurasia Drilling Co's Gross Profit for the six months ended in Jun. 2015 was $196 Mil. Eurasia Drilling Co's Revenue for the six months ended in Jun. 2015 was $923 Mil. Therefore, Eurasia Drilling Co's Gross Margin % for the quarter that ended in Jun. 2015 was 21.28%.

Warning Sign:

Eurasia Drilling Co Ltd gross margin has been in long term decline. The average rate of decline per year is -7.1%.

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

LSE:EDCL' s Gross Margin % Range Over the Past 10 Years
Min: 23.73 Med: 30.87 Max: 34.01
Current: 23.73

During the past 9 years, the highest Gross Margin % of Eurasia Drilling Co was 34.01%. The lowest was 23.73%. And the median was 30.87%.

LSE:EDCL's Gross Margin % is not ranked
in the Oil & Gas industry.
Industry Median: 27.905 vs LSE:EDCL: 23.73

Eurasia Drilling Co had a gross margin of 21.28% for the quarter that ended in Jun. 2015 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Eurasia Drilling Co was -7.10% per year.

Eurasia Drilling Co Gross Margin % Historical Data

The historical data trend for Eurasia Drilling Co'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.

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Eurasia Drilling Co Gross Margin % Chart

Eurasia Drilling Co Annual Data

Trend

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Gross Margin %

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34.01

31.10

33.55

24.62

24.31

Eurasia Drilling Co Semi-Annual Data
	Jun09	Dec09	Jun10	Dec10	Jun11	Dec11	Jun12	Dec12	Jun13	Dec13	Jun14	Dec14	Jun15
Gross Margin %	Get a 7-Day Free Trial								35.97	13.82	23.40	25.31	21.28

Competitive Comparison of Eurasia Drilling Co's Gross Margin %

For the Oil & Gas Drilling subindustry, Eurasia Drilling Co'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.

Eurasia Drilling Co's Gross Margin % Distribution in the Oil & Gas Industry

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

* The bar in red indicates where Eurasia Drilling Co's Gross Margin % falls into.

Eurasia Drilling Co Gross Margin % Calculation

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

Eurasia Drilling Co'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 )
	=	723.4	/	2975.211
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(2975.211 - 2251.86)	/	2975.211
	=	24.31 %

Eurasia Drilling Co'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 )
	=	196.4	/	922.703
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(922.703 - 726.322)	/	922.703
	=	21.28 %

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.

Eurasia Drilling Co (LSE:EDCL) 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

Eurasia Drilling Co had a gross margin of 21.28% for the quarter that ended in Jun. 2015 => Competition eroding margins

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.

Eurasia Drilling Co Gross Margin % Related Terms

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Eurasia Drilling Co (LSE:EDCL) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Eurasia Drilling Co Ltd (LSE:EDCL) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

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Address

Website

http://www.eurasiadrilling.com

Eurasia Drilling Co Ltd was incorporated on November 25, 2002 under the Law of the Cayman Islands. The Company is engaged in providing exploratory and developmental drilling and oil and gas field services to companies operating within the Russian Federation, Kazakhstan, Iraq and the Caspian Sea region. The Company operates in two operating and geographical segments: onshore drilling conducted in the CIS and off-shore drilling conducted in the Caspian Sea.

Eurasia Drilling Co (LSE:EDCL) Headlines

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