Switch to:
GuruFocus has detected 2 Warning Signs with Biomarin Pharmaceutical Inc $BMRN.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.
Biomarin Pharmaceutical Inc (NAS:BMRN)
Gross Profit
$907 Mil (TTM As of Dec. 2016)

Biomarin Pharmaceutical Inc's gross profit for the three months ended in Dec. 2016 was $236 Mil. Biomarin Pharmaceutical Inc's gross profit for the trailing twelve months (TTM) ended in Dec. 2016 was $907 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Biomarin Pharmaceutical Inc's gross profit for the three months ended in Dec. 2016 was $236 Mil. Biomarin Pharmaceutical Inc's revenue for the three months ended in Dec. 2016 was $300 Mil. Therefore, Biomarin Pharmaceutical Inc's Gross Margin for the quarter that ended in Dec. 2016 was 78.62%.

Biomarin Pharmaceutical Inc had a gross margin of 78.62% for the quarter that ended in Dec. 2016 => Durable competitive advantage

During the past 13 years, the highest Gross Margin of Biomarin Pharmaceutical Inc was 84.90%. The lowest was 79.70%. And the median was 81.98%.


Definition

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

Biomarin Pharmaceutical Inc's Gross Profit for the fiscal year that ended in Dec. 2016 is calculated as

Gross Profit (A: Dec. 2016 )=Revenue - Cost of Goods Sold
=1116.854 - 209.62
=907

Biomarin Pharmaceutical Inc's Gross Profit for the quarter that ended in Dec. 2016 is calculated as

Gross Profit (Q: Dec. 2016 )=Revenue - Cost of Goods Sold
=300.091 - 64.147
=236

Biomarin Pharmaceutical Inc Gross Profit for the trailing twelve months (TTM) ended in Dec. 2016 was 193.618 (Mar. 2016 ) + 248.514 (Jun. 2016 ) + 229.158 (Sep. 2016 ) + 235.944 (Dec. 2016 ) = $907 Mil.

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

Biomarin Pharmaceutical Inc's Gross Margin for the quarter that ended in Dec. 2016 is calculated as

Gross Margin (Q: Dec. 2016 )=Gross Profit (Q: Dec. 2016 ) / Revenue (Q: Dec. 2016 )
=(Revenue - Cost of Goods Sold) / Revenue
=236 / 300.091
=78.62 %

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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

Biomarin Pharmaceutical Inc had a gross margin of 78.62% for the quarter that ended in Dec. 2016 => Durable competitive advantage


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 local exchange's currency.

Biomarin Pharmaceutical Inc Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
Gross_Profit 103244259306357409460627738907

Biomarin Pharmaceutical Inc Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
Gross_Profit 147192172212174180194249229236
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK