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Cryo-Cell International Inc (OTCPK:CCEL)
Gross Profit
$14.31 Mil (TTM As of May. 2015)

Cryo-Cell International Inc's gross profit for the three months ended in May. 2015 was $3.64 Mil. Cryo-Cell International Inc's gross profit for the trailing twelve months (TTM) ended in May. 2015 was $14.31 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Cryo-Cell International Inc's gross profit for the three months ended in May. 2015 was $3.64 Mil. Cryo-Cell International Inc's revenue for the three months ended in May. 2015 was $5.01 Mil. Therefore, Cryo-Cell International Inc's Gross Margin for the quarter that ended in May. 2015 was 72.54%.

Cryo-Cell International Inc had a gross margin of 72.54% for the quarter that ended in May. 2015 => Durable competitive advantage

During the past 13 years, the highest Gross Margin of Cryo-Cell International Inc was 100.00%. The lowest was 60.00%. And the median was 71.98%.


Definition

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

Cryo-Cell International Inc's Gross Profit for the fiscal year that ended in Nov. 2014 is calculated as

Gross Profit (A: Nov. 2014 )=Revenue - Cost of Goods Sold
=20.127 - 5.632
=14.50

Cryo-Cell International Inc's Gross Profit for the quarter that ended in May. 2015 is calculated as

Gross Profit (Q: May. 2015 )=Revenue - Cost of Goods Sold
=5.014 - 1.377
=3.64

Cryo-Cell International Inc Gross Profit for the trailing twelve months (TTM) ended in May. 2015 was 3.438 (Aug. 2014 ) + 3.667 (Nov. 2014 ) + 3.569 (Feb. 2015 ) + 3.637 (May. 2015 ) = $14.31 Mil.

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

Cryo-Cell International Inc's Gross Margin for the quarter that ended in May. 2015 is calculated as

Gross Margin (Q: May. 2015 )=Gross Profit (Q: May. 2015 ) / Revenue (Q: May. 2015 )
=(Revenue - Cost of Goods Sold) / Revenue
=3.64 / 5.014
=72.54 %

* 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

Cryo-Cell International Inc had a gross margin of 72.54% for the quarter that ended in May. 2015 => 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 own currency.

Cryo-Cell International Inc Annual Data

Nov05Nov06Nov07Nov08Nov09Nov10Nov11Nov12Nov13Nov14
Gross_Profit 10.3111.1110.8711.1711.7913.1413.5213.0813.6714.50

Cryo-Cell International Inc Quarterly Data

Feb13May13Aug13Nov13Feb14May14Aug14Nov14Feb15May15
Gross_Profit 3.323.483.473.403.993.403.443.673.573.64
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