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Cryo-Cell International Inc (OTCPK:CCEL)
Gross Profit
$16.40 Mil (TTM As of May. 2016)

Cryo-Cell International Inc's gross profit for the three months ended in May. 2016 was $4.34 Mil. Cryo-Cell International Inc's gross profit for the trailing twelve months (TTM) ended in May. 2016 was $16.40 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. 2016 was $4.34 Mil. Cryo-Cell International Inc's revenue for the three months ended in May. 2016 was $5.77 Mil. Therefore, Cryo-Cell International Inc's Gross Margin for the quarter that ended in May. 2016 was 75.21%.

Cryo-Cell International Inc had a gross margin of 75.21% for the quarter that ended in May. 2016 => Durable competitive advantage

During the past 13 years, the highest Gross Margin of Cryo-Cell International Inc was 75.45%. The lowest was 62.25%. And the median was 72.41%.


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. 2015 is calculated as

Gross Profit (A: Nov. 2015 )=Revenue - Cost of Goods Sold
=21.091 - 5.631
=15.46

Cryo-Cell International Inc's Gross Profit for the quarter that ended in May. 2016 is calculated as

Gross Profit (Q: May. 2016 )=Revenue - Cost of Goods Sold
=5.773 - 1.431
=4.34

Cryo-Cell International Inc Gross Profit for the trailing twelve months (TTM) ended in May. 2016 was 3.929 (Aug. 2015 ) + 4.326 (Nov. 2015 ) + 3.804 (Feb. 2016 ) + 4.342 (May. 2016 ) = $16.40 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. 2016 is calculated as

Gross Margin (Q: May. 2016 )=Gross Profit (Q: May. 2016 ) / Revenue (Q: May. 2016 )
=(Revenue - Cost of Goods Sold) / Revenue
=4.34 / 5.773
=75.21 %

* 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 75.21% for the quarter that ended in May. 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 own currency.

Cryo-Cell International Inc Annual Data

Nov06Nov07Nov08Nov09Nov10Nov11Nov12Nov13Nov14Nov15
Gross_Profit 11.1110.8711.1713.1313.2613.5213.0813.6714.5015.46

Cryo-Cell International Inc Quarterly Data

Feb14May14Aug14Nov14Feb15May15Aug15Nov15Feb16May16
Gross_Profit 3.993.403.443.673.573.643.934.333.804.34
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