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GuruFocus has detected 12 Warning Signs with Golub Capital BDC Inc \$GBDC.
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Golub Capital BDC Inc (NAS:GBDC)
Gross Profit
\$131.2 Mil (TTM As of Dec. 2016)

Golub Capital BDC Inc's gross profit for the three months ended in Dec. 2016 was \$33.8 Mil. Golub Capital BDC Inc's gross profit for the trailing twelve months (TTM) ended in Dec. 2016 was \$131.2 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Golub Capital BDC Inc's gross profit for the three months ended in Dec. 2016 was \$33.8 Mil. Golub Capital BDC Inc's revenue for the three months ended in Dec. 2016 was \$33.8 Mil. Therefore, Golub Capital BDC Inc's Gross Margin for the quarter that ended in Dec. 2016 was 100.00%.

Golub Capital BDC Inc had a gross margin of 100.00% for the quarter that ended in Dec. 2016 => Durable competitive advantage

During the past 8 years, the highest Gross Margin of Golub Capital BDC Inc was 100.00%. The lowest was 83.05%. And the median was 87.97%.

Definition

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

Golub Capital BDC 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 = 127.871 - 0 = 127.9

Golub Capital BDC 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 = 33.849 - 0 = 33.8

Golub Capital BDC Inc Gross Profit for the trailing twelve months (TTM) ended in Dec. 2016 was 30.762 (Mar. 2016 ) + 32.106 (Jun. 2016 ) + 34.503 (Sep. 2016 ) + 33.849 (Dec. 2016 ) = \$131.2 Mil.

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

Golub Capital BDC 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 = 33.8 / 33.849 = 100.00 %

* 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

Golub Capital BDC Inc had a gross margin of 100.00% for the quarter that ended in Dec. 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.

Golub Capital BDC Inc Annual Data

 Sep09 Sep10 Sep11 Sep12 Sep13 Sep14 Sep15 Sep16 Gross_Profit 0.0 0.0 30.5 29.8 39.2 49.4 72.0 92.5 99.6 0.0

Golub Capital BDC Inc Quarterly Data

 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Gross_Profit 13.6 27.5 28.5 30.4 33.6 30.5 30.8 32.1 34.5 33.8
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