Switch to:
Griffin Industrial Realty Inc (NAS:GRIF)
Gross Profit
$17.33 Mil (TTM As of May. 2015)

Griffin Industrial Realty Inc's gross profit for the three months ended in May. 2015 was $4.21 Mil. Griffin Industrial Realty Inc's gross profit for the trailing twelve months (TTM) ended in May. 2015 was $17.33 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Griffin Industrial Realty Inc's gross profit for the three months ended in May. 2015 was $4.21 Mil. Griffin Industrial Realty Inc's revenue for the three months ended in May. 2015 was $6.20 Mil. Therefore, Griffin Industrial Realty Inc's Gross Margin for the quarter that ended in May. 2015 was 67.88%.

Griffin Industrial Realty Inc had a gross margin of 67.88% for the quarter that ended in May. 2015 => Durable competitive advantage

During the past 13 years, the highest Gross Margin of Griffin Industrial Realty Inc was 170.34%. The lowest was 3.10%. And the median was 26.15%.


Definition

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

Griffin Industrial Realty Inc's Gross Profit for the fiscal year that ended in Nov. 2014 is calculated as

Gross Profit (A: Nov. 2014 )=Revenue - Cost of Goods Sold
=24.219 - 8.604
=15.62

Griffin Industrial Realty Inc's Gross Profit for the quarter that ended in May. 2015 is calculated as

Gross Profit (Q: May. 2015 )=Revenue - Cost of Goods Sold
=6.196 - 1.99
=4.21

Griffin Industrial Realty Inc Gross Profit for the trailing twelve months (TTM) ended in May. 2015 was 4.069 (Aug. 2014 ) + 5.438 (Nov. 2014 ) + 3.616 (Feb. 2015 ) + 4.206 (May. 2015 ) = $17.33 Mil.

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

Griffin Industrial Realty Inc's Gross Margin for the quarter that ended in May. 2015 is calculated as

Gross Margin (Q: May. 2015 )=Gross Profit (Q: May. 2015 ) / Revenue (Q: May. 2015 )
=(Revenue - Cost of Goods Sold) / Revenue
=4.21 / 6.196
=67.88 %

* 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 Industrial Realty Inc had a gross margin of 67.88% for the quarter that ended in May. 2015 => 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 Industrial Realty Inc Annual Data

Nov05Nov06Nov07Nov08Nov09Nov10Nov11Nov12Nov13Nov14
Gross_Profit 6.0012.2921.461.385.316.249.4916.5316.9015.62

Griffin Industrial Realty Inc Quarterly Data

Feb13May13Aug13Nov13Feb14May14Aug14Nov14Feb15May15
Gross_Profit 3.424.443.625.412.583.524.075.443.624.21
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GuruFocus Premium Plus Membership

FEEDBACK