The Motley Fool Discussion Boards
Birds of a Feather / Teens and Their Money
|Subject: Re: Stock of the Week: Activision (ATVI)||Date: 2/26/2008 4:05 PM|
|Author: Jognils||Number: 1990 of 2683|
All right, here's what I have so far.
2007 Gross margin - Q4: 48.6%; Q3: 35.5%; Q2: 33.8% ; Q1: 30.9%
2007 Operating margin - Q4: 27.3%; Q3: -3.0%; Q2: 6.1%; Q1: -9.3%
2007 Profit margin - Q4: 18.4%; Q3: 0.2%; Q2: 5.6%; Q1: -4.6%
Gross margin is the percentage of sales revenue left over after the cost of goods sold is deducted. A higher gross margin reflects efficiency in turning raw materials into revenue.
Operating margin is the percentage of sales revenue remaining after all operating expenses have been taken into account. A higher operating margin means the company is doing a good job of keeping sales and administrative costs low.
Profit margin is the portion of revenue retained after all expenses have been deducted, or net income. A company with a high profit margin is retaining a high level of profit for each dollar of revenue it earns.
Notes on profitability margins:
•Gross margin has risen each quarter, meaning sales are growing fas