LifeQuest World (LifeQuest World) Gross Margin % : 74.94% (As of May. 2009)

LifeQuest World Gross Margin % Chart

LifeQuest World Annual Data
	Trend	May00	May01	May02	May03	May04	May05	May06	May07	May08	May09
Gross Margin %		Get a 7-Day Free Trial					78.51	75.64	75.33	78.61	74.94

LifeQuest World Semi-Annual Data
	May99	May00	May01	May02	May03	May04	May05	May06	May07	May08	May09
Gross Margin %	Get a 7-Day Free Trial						78.51	75.64	75.33	78.61	74.94

Competitive Comparison of LifeQuest World's Gross Margin %

For the Pollution & Treatment Controls subindustry, LifeQuest World'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.

LifeQuest World's Gross Margin % Distribution in the Industrial Products Industry

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

* The bar in red indicates where LifeQuest World's Gross Margin % falls into.

LifeQuest World Gross Margin % Calculation

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

LifeQuest World's Gross Margin for the fiscal year that ended in May. 2009 is calculated as

LifeQuest World's Gross Margin for the quarter that ended in May. 2009 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.

LifeQuest World  (OTCPK:LQWC) 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

LifeQuest World had a gross margin of 74.94% for the quarter that ended in May. 2009 => 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.

LifeQuest World Gross Margin % Related Terms

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LifeQuest World (LifeQuest World) Business Description