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Griffin Land & Nurseries Inc (NAS:GRIF)
Gross Profit
$15.62 Mil (TTM As of Nov. 2014)

Griffin Land & Nurseries Inc's gross profit for the three months ended in Nov. 2014 was $5.44 Mil. Griffin Land & Nurseries Inc's gross profit for the trailing twelve months (TTM) ended in Nov. 2014 was $15.62 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 Nov. 2014 was $5.44 Mil. Griffin Land & Nurseries Inc's revenue for the three months ended in Nov. 2014 was $7.72 Mil. Therefore, Griffin Land & Nurseries Inc's Gross Margin for the quarter that ended in Nov. 2014 was 70.44%.

Griffin Land & Nurseries Inc had a gross margin of 70.44% for the quarter that ended in Nov. 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 26.15%.


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. 2014 is calculated as

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

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

Gross Profit (Q: Nov. 2014 )=Revenue - Cost of Goods Sold
=7.72 - 2.282
=5.44

Griffin Land & Nurseries Inc Gross Profit for the trailing twelve months (TTM) ended in Nov. 2014 was 2.584 (Feb. 2014 ) + 3.524 (May. 2014 ) + 4.069 (Aug. 2014 ) + 5.438 (Nov. 2014 ) = $15.62 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 Nov. 2014 is calculated as

Gross Margin (Q: Nov. 2014 )=Gross Profit (Q: Nov. 2014 ) / Revenue (Q: Nov. 2014 )
=(Revenue - Cost of Goods Sold) / Revenue
=5.44 / 7.72
=70.44 %

* 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 70.44% for the quarter that ended in Nov. 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

Nov05Nov06Nov07Nov08Nov09Nov10Nov11Nov12Nov13Nov14
Gross_Profit 6.0012.2921.461.385.316.249.4916.5316.9015.62

Griffin Land & Nurseries Inc Quarterly Data

Aug12Nov12Feb13May13Aug13Nov13Feb14May14Aug14Nov14
Gross_Profit 6.376.083.424.443.625.412.583.524.075.44
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