The Motley Fool Discussion Boards

Previous Page

Birds of a Feather / Teens and Their Money

URL:  http://boards.fool.com/all-right-heres-what-i-have-so-far-2007-gross-26420011.aspx

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