Riviera Tool Co (Riviera Tool Co) Gross Margin % : 15.48% (As of Nov. 2006)

Riviera Tool Co Gross Margin % Chart

Riviera Tool Co Annual Data
	Trend	Aug97	Aug98	Aug99	Aug00	Aug01	Aug02	Aug03	Aug04	Aug05	Aug06
Gross Margin %		Get a 7-Day Free Trial					-4.48	9.91	-21.67	11.89	11.25

Riviera Tool Co Quarterly Data
	Feb02	May02	Aug02	Nov02	Feb03	May03	Aug03	Nov03	Feb04	May04	Aug04	Nov04	Feb05	May05	Aug05	Nov05	Feb06	May06	Aug06	Nov06
Gross Margin %	Get a 7-Day Free Trial															9.83	13.91	19.21	-0.78	15.48

Competitive Comparison of Riviera Tool Co's Gross Margin %

For the Metal Fabrication subindustry, Riviera Tool 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.

Riviera Tool Co's Gross Margin % Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Riviera Tool Co's Gross Margin % distribution charts can be found below:

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

Riviera Tool Co Gross Margin % Calculation

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

Riviera Tool Co's Gross Margin for the fiscal year that ended in Aug. 2006 is calculated as

Riviera Tool Co's Gross Margin for the quarter that ended in Nov. 2006 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.

Riviera Tool Co  (OTCPK:RIVT) 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

Riviera Tool Co had a gross margin of 15.48% for the quarter that ended in Nov. 2006 => 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.

Riviera Tool Co Gross Margin % Related Terms

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Riviera Tool Co (Riviera Tool Co) Business Description