Profit Margins
Using median values from the previous chapters, fleet profit margins can be calculated. The profit margin represents the return to the vessel owner for every dollar of gross revenue generated. These ratios, shown in the table below, can inform how changes in quota/expected landings impact the bottom line of vessel operators.
Table 10.1: Operating Profit Margins by Primary Gear
| Gillnet |
9 |
89 |
10% |
$111,515 |
$27,782 |
24.9% |
| Handgear |
53 |
365 |
15% |
$12,789 |
$3,572 |
27.9% |
| Pot/Trap |
158 |
1347 |
12% |
$144,308 |
$54,422 |
37.7% |
| Scallop Dredge |
28 |
219 |
13% |
$993,348 |
$454,378 |
45.7% |
| Trawl |
26 |
190 |
14% |
$636,913 |
$269,715 |
42.3% |
Table 10.2: Total Profit Margins by Primary Gear
| Gillnet |
9 |
89 |
10% |
$111,515 |
-$4,693 |
-4.2% |
| Handgear |
53 |
365 |
15% |
$12,789 |
-$15,395 |
-120.4% |
| Pot/Trap |
158 |
1347 |
12% |
$144,308 |
-$3,419 |
-2.4% |
| Scallop Dredge |
28 |
219 |
13% |
$993,348 |
$161,993 |
16.3% |
| Trawl |
26 |
190 |
14% |
$636,913 |
$22,859 |
3.6% |
Table 10.3: Operating Profit Margins by Primary Fishery
| Groundfish |
7 |
52 |
13% |
$513,837 |
$204,553 |
39.8% |
| Highly Migratory Species |
34 |
196 |
17% |
$14,186 |
$2,818 |
19.9% |
| Lobster |
151 |
1274 |
12% |
$146,156 |
$55,218 |
37.8% |
| Scallop |
28 |
227 |
12% |
$993,348 |
$454,378 |
45.7% |
| Squid, Mackerel, Butterfish |
9 |
60 |
15% |
$655,878 |
$265,778 |
40.5% |
| Striped Bass |
12 |
65 |
18% |
$5,853 |
$4,116 |
70.3% |
| Summer Flounder, Scup, Black Sea Bass |
24 |
135 |
18% |
$30,484 |
$13,751 |
45.1% |
Table 10.4: Total Profit Margins by Primary Fishery
| Groundfish |
7 |
52 |
13% |
$513,837 |
$21,800 |
4.2% |
| Highly Migratory Species |
34 |
196 |
17% |
$14,186 |
-$22,366 |
-157.7% |
| Lobster |
151 |
1274 |
12% |
$146,156 |
-$4,462 |
-3.1% |
| Scallop |
28 |
227 |
12% |
$993,348 |
$161,993 |
16.3% |
| Squid, Mackerel, Butterfish |
9 |
60 |
15% |
$655,878 |
$179,847 |
27.4% |
| Striped Bass |
12 |
65 |
18% |
$5,853 |
-$7,030 |
-120.1% |
| Summer Flounder, Scup, Black Sea Bass |
24 |
135 |
18% |
$30,484 |
-$2,385 |
-7.8% |
Table 10.5: Operating Profit Margins by Primary Gear/Fishery
| Gillnet-Other |
6 |
69 |
9% |
$90,949 |
$63,616 |
69.9% |
| Handgear-Highly Migratory Species |
31 |
184 |
17% |
$12,910 |
$1,308 |
10.1% |
| Handgear-Striped Bass |
10 |
54 |
19% |
$3,099 |
$1,615 |
52.1% |
| Handgear-Summer Flounder, Scup, BSB |
9 |
56 |
16% |
$20,731 |
$8,899 |
42.9% |
| Pot/Trap-Lobster |
149 |
1268 |
12% |
$146,156 |
$55,218 |
37.8% |
| Pot/Trap-Summer Flounder, Scup, BSB |
6 |
23 |
26% |
$72,044 |
$30,818 |
42.8% |
| Scallop Dredge-Scallop |
28 |
215 |
13% |
$993,348 |
$454,378 |
45.7% |
| Trawl-Groundfish |
5 |
41 |
12% |
$563,972 |
$273,651 |
48.5% |
| Trawl-Squid, Mackerel, Butterfish |
8 |
53 |
15% |
$744,547 |
$279,961 |
37.6% |
| Trawl-Summer Flounder, Scup, BSB |
9 |
56 |
16% |
$305,512 |
$56,052 |
18.3% |
Table 10.6: Total Profit Margins by Primary Gear/Fishery
| Gillnet-Other |
6 |
69 |
9% |
$90,949 |
$10,079 |
11.1% |
| Handgear-Highly Migratory Species |
31 |
184 |
17% |
$12,910 |
-$23,299 |
-180.5% |
| Handgear-Striped Bass |
10 |
54 |
19% |
$3,099 |
-$7,030 |
-226.8% |
| Handgear-Summer Flounder, Scup, BSB |
9 |
56 |
16% |
$20,731 |
-$7,506 |
-36.2% |
| Pot/Trap-Lobster |
149 |
1268 |
12% |
$146,156 |
-$4,462 |
-3.1% |
| Pot/Trap-Summer Flounder, Scup, BSB |
6 |
23 |
26% |
$72,044 |
$5,369 |
7.5% |
| Scallop Dredge-Scallop |
28 |
215 |
13% |
$993,348 |
$161,993 |
16.3% |
| Trawl-Groundfish |
5 |
41 |
12% |
$563,972 |
$26,542 |
4.7% |
| Trawl-Squid, Mackerel, Butterfish |
8 |
53 |
15% |
$744,547 |
$209,659 |
28.2% |
| Trawl-Summer Flounder, Scup, BSB |
9 |
56 |
16% |
$305,512 |
$19,176 |
6.3% |
To interpret these results, $1.00 of ex-vessel revenue for scallop vessels translates to $0.16 of profit for the vessel owner. For groundfish vessels, $1.00 of revenue translates to $0.04 of profit for the vessel owner. The combination of gear and fishery also highlights the differences in how fleets operate. For example, vessels in the scup, black sea bass, scup fishery have substantially different operations depending on whether they use pot/trap or trawl gear. Those vessels using pot/trap gear within the fishery show modest gross revenues but a total profit/revenue ratio of 7.5%. Those vessels using trawl gear have higher revenues and total profit but a lower total profit/revenue ratio of 6.3%. These total profit margins can provide critical insight into the state of fishing fleets beyond more commonly reported metrics such as gross revenue or operating profit.