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Daktronics Inc (NAS:DAKT)
Gross Profit
$144.6 Mil (TTM As of Apr. 2015)

Daktronics Inc's gross profit for the three months ended in Apr. 2015 was $35.2 Mil. Daktronics Inc's gross profit for the trailing twelve months (TTM) ended in Apr. 2015 was $144.6 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Daktronics Inc's gross profit for the three months ended in Apr. 2015 was $35.2 Mil. Daktronics Inc's revenue for the three months ended in Apr. 2015 was $158.1 Mil. Therefore, Daktronics Inc's Gross Margin for the quarter that ended in Apr. 2015 was 22.29%.

Daktronics Inc had a gross margin of 22.29% for the quarter that ended in Apr. 2015 => Competition eroding margins

During the past 13 years, the highest Gross Margin of Daktronics Inc was 34.53%. The lowest was 23.17%. And the median was 29.32%.


Definition

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

Daktronics Inc's Gross Profit for the fiscal year that ended in Apr. 2015 is calculated as

Gross Profit (A: Apr. 2015 )=Revenue - Cost of Goods Sold
=615.942 - 471.363
=144.6

Daktronics Inc's Gross Profit for the quarter that ended in Apr. 2015 is calculated as

Gross Profit (Q: Apr. 2015 )=Revenue - Cost of Goods Sold
=158.086 - 122.849
=35.2

Daktronics Inc Gross Profit for the trailing twelve months (TTM) ended in Apr. 2015 was 43.403 (Jul. 2014 ) + 40.877 (Oct. 2014 ) + 25.062 (Jan. 2015 ) + 35.237 (Apr. 2015 ) = $144.6 Mil.

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

Daktronics Inc's Gross Margin for the quarter that ended in Apr. 2015 is calculated as

Gross Margin (Q: Apr. 2015 )=Gross Profit (Q: Apr. 2015 ) / Revenue (Q: Apr. 2015 )
=(Revenue - Cost of Goods Sold) / Revenue
=35.2 / 158.086
=22.29 %

* 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

Daktronics Inc had a gross margin of 22.29% for the quarter that ended in Apr. 2015 => 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.

Daktronics Inc Annual Data

Apr06Apr07Apr08Apr09Apr10Apr11Apr12Apr13Apr14Apr15
Gross_Profit 94.1126.6147.6155.494.6111.5113.4133.9141.7144.6

Daktronics Inc Quarterly Data

Apr13Jul13Oct13Jan14Apr14Jul14Oct14Jan15Apr15Jul15
Gross_Profit 28.135.543.429.133.843.440.925.135.235.5
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