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Clearfield Inc (NAS:CLFD)
Gross Profit
\$32.87 Mil (TTM As of Sep. 2016)

Clearfield Inc's gross profit for the three months ended in Sep. 2016 was \$9.57 Mil. Clearfield Inc's gross profit for the trailing twelve months (TTM) ended in Sep. 2016 was \$32.87 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Clearfield Inc's gross profit for the three months ended in Sep. 2016 was \$9.57 Mil. Clearfield Inc's revenue for the three months ended in Sep. 2016 was \$21.05 Mil. Therefore, Clearfield Inc's Gross Margin for the quarter that ended in Sep. 2016 was 45.47%.

Clearfield Inc had a gross margin of 45.47% for the quarter that ended in Sep. 2016 => Durable competitive advantage

During the past 13 years, the highest Gross Margin of Clearfield Inc was 43.66%. The lowest was 28.67%. And the median was 41.01%.

Definition

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

Clearfield Inc's Gross Profit for the fiscal year that ended in Sep. 2016 is calculated as

 Gross Profit (A: Sep. 2016 ) = Revenue - Cost of Goods Sold = 75.288 - 42.417 = 32.87

Clearfield Inc's Gross Profit for the quarter that ended in Sep. 2016 is calculated as

 Gross Profit (Q: Sep. 2016 ) = Revenue - Cost of Goods Sold = 21.052 - 11.479 = 9.57

Clearfield Inc Gross Profit for the trailing twelve months (TTM) ended in Sep. 2016 was 6.677 (Dec. 2015 ) + 7.28 (Mar. 2016 ) + 9.34 (Jun. 2016 ) + 9.573 (Sep. 2016 ) = \$32.87 Mil.

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

Clearfield Inc's Gross Margin for the quarter that ended in Sep. 2016 is calculated as

 Gross Margin (Q: Sep. 2016 ) = Gross Profit (Q: Sep. 2016 ) / Revenue (Q: Sep. 2016 ) = (Revenue - Cost of Goods Sold) / Revenue = 9.57 / 21.052 = 45.47 %

* 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

Clearfield Inc had a gross margin of 45.47% for the quarter that ended in Sep. 2016 => Durable competitive advantage

Related Terms

Historical Data

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

Clearfield Inc Annual Data

 Mar07 Sep08 Sep09 Sep10 Sep11 Sep12 Sep13 Sep14 Sep15 Sep16 Gross_Profit 5.27 7.85 8.87 9.14 14.66 15.29 21.99 24.60 24.87 32.87

Clearfield Inc Quarterly Data

 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Gross_Profit 6.04 5.90 5.74 4.75 7.80 6.58 6.68 7.28 9.34 9.57
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