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Bioanalytical Systems Inc (NAS:BASI)
Gross Profit
$8.05 Mil (TTM As of Jun. 2014)

Bioanalytical Systems Inc's gross profit for the three months ended in Jun. 2014 was $1.98 Mil. Bioanalytical Systems Inc's gross profit for the trailing twelve months (TTM) ended in Jun. 2014 was $8.05 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Bioanalytical Systems Inc's gross profit for the three months ended in Jun. 2014 was $1.98 Mil. Bioanalytical Systems Inc's revenue for the three months ended in Jun. 2014 was $6.03 Mil. Therefore, Bioanalytical Systems Inc's Gross Margin for the quarter that ended in Jun. 2014 was 32.89%.

Bioanalytical Systems Inc had a gross margin of 32.89% for the quarter that ended in Jun. 2014 => Competition eroding margins

During the past 13 years, the highest Gross Margin of Bioanalytical Systems Inc was 61.07%. The lowest was 23.92%. And the median was 34.89%.

Warning Sign:

Bioanalytical Systems Inc gross margin has been in long term decline. The average rate of decline per year is -1.3%.


Definition

Gross Profit is the different between the sale prices and the cost of buying or producing the goods.

Bioanalytical Systems Inc's Gross Profit for the fiscal year that ended in Sep. 2013 is calculated as

Gross Profit (A: Sep. 2013 )=Revenue - Cost of Goods Sold
=22.068 - 15.013
=7.06

Bioanalytical Systems Inc's Gross Profit for the quarter that ended in Jun. 2014 is calculated as

Gross Profit (Q: Jun. 2014 )=Revenue - Cost of Goods Sold
=6.032 - 4.048
=1.98

Bioanalytical Systems Inc Gross Profit for the trailing twelve months (TTM) ended in Jun. 2014 was 1.909 (Sep. 2013 ) + 2.145 (Dec. 2013 ) + 2.012 (Mar. 2014 ) + 1.984 (Jun. 2014 ) = $8.05 Mil.

Gross Profit is the numerator in the calculation of Gross Margin:

Bioanalytical Systems Inc's Gross Margin for the quarter that ended in Jun. 2014 is calculated as

Gross Margin (Q: Jun. 2014 )=Gross Profit (Q: Jun. 2014 ) / Revenue (Q: Jun. 2014 )
=(Revenue - Cost of Goods Sold) / Revenue
=1.98 / 6.032
=32.89 %

* All numbers are in millions except for per share data and ratio. All numbers are in their own 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.


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

Bioanalytical Systems Inc had a gross margin of 32.89% for the quarter that ended in Jun. 2014 => Competition eroding margins


Related Terms

Cost of Goods Sold, Gross Margin, Revenue


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Bioanalytical Systems Inc Annual Data

Sep04Sep05Sep06Sep07Sep08Sep09Sep10Sep11Sep12Sep13
Gross_Profit 11.5315.3813.7113.7915.337.607.3310.516.847.06

Bioanalytical Systems Inc Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
Gross_Profit 1.142.062.151.861.262.031.912.152.011.98
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