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Griffin Land & Nurseries, Inc. (NAS:GRIF)
Gross Profit
$17.59 Mil (TTM As of Feb. 2014)

Griffin Land & Nurseries, Inc.'s gross profit for the three months ended in Feb. 2014 was $2.58 Mil. Griffin Land & Nurseries, Inc.'s gross profit for the trailing twelve months (TTM) ended in Feb. 2014 was $17.59 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Griffin Land & Nurseries, Inc.'s gross profit for the three months ended in Feb. 2014 was $2.58 Mil. Griffin Land & Nurseries, Inc.'s revenue for the three months ended in Feb. 2014 was $5.06 Mil. Therefore, Griffin Land & Nurseries, Inc.'s Gross Margin for the quarter that ended in Feb. 2014 was 51.08%.

Griffin Land & Nurseries, Inc. had a gross margin of 51.08% for the quarter that ended in Feb. 2014 => Durable competitive advantage

During the past 13 years, the highest Gross Margin of Griffin Land & Nurseries, Inc. was 170.34%. The lowest was 3.10%. And the median was 25.51%.


Definition

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

Griffin Land & Nurseries, Inc.'s Gross Profit for the fiscal year that ended in Nov. 2013 is calculated as

Gross Profit (A: Nov. 2013 )=Revenue - Cost of Goods Sold
=25.526 - 8.627
=16.90

Griffin Land & Nurseries, Inc.'s Gross Profit for the quarter that ended in Feb. 2014 is calculated as

Gross Profit (Q: Feb. 2014 )=Revenue - Cost of Goods Sold
=5.059 - 2.475
=2.58

Griffin Land & Nurseries, Inc. Gross Profit for the trailing twelve months (TTM) ended in Feb. 2014 was 4.194 (May. 2013 ) + 2.066 (Aug. 2013 ) + 8.743 (Nov. 2013 ) + 2.584 (Feb. 2014 ) = $17.59 Mil.

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

Griffin Land & Nurseries, Inc.'s Gross Margin for the quarter that ended in Feb. 2014 is calculated as

Gross Margin (Q: Feb. 2014 )=Gross Profit (Q: Feb. 2014 ) / Revenue (Q: Feb. 2014 )
=(Revenue - Cost of Goods Sold) / Revenue
=2.58 / 5.059
=51.08 %

* 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

Griffin Land & Nurseries, Inc. had a gross margin of 51.08% for the quarter that ended in Feb. 2014 => 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.

Griffin Land & Nurseries, Inc. Annual Data

Nov04Nov05Nov06Nov07Nov08Nov09Nov10Nov11Nov12Nov13
Gross_Profit 5.506.0012.2921.461.385.316.249.4916.5316.90

Griffin Land & Nurseries, Inc. Quarterly Data

Nov11Feb12May12Aug12Nov12Feb13May13Aug13Nov13Feb14
Gross_Profit 4.551.452.646.376.083.424.192.078.742.58
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