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Griffin Industrial Realty Inc (NAS:GRIF)
Gross Profit
\$20.27 Mil (TTM As of May. 2016)

Griffin Industrial Realty Inc's gross profit for the three months ended in May. 2016 was \$4.53 Mil. Griffin Industrial Realty Inc's gross profit for the trailing twelve months (TTM) ended in May. 2016 was \$20.27 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. 2016 was \$4.53 Mil. Griffin Industrial Realty Inc's revenue for the three months ended in May. 2016 was \$6.52 Mil. Therefore, Griffin Industrial Realty Inc's Gross Margin for the quarter that ended in May. 2016 was 69.47%.

Griffin Industrial Realty Inc had a gross margin of 69.47% for the quarter that ended in May. 2016 => Durable competitive advantage

During the past 13 years, the highest Gross Margin of Griffin Industrial Realty Inc was 68.27%. The lowest was 3.10%. And the median was 50.29%.

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. 2015 is calculated as

 Gross Profit (A: Nov. 2015 ) = Revenue - Cost of Goods Sold = 28.088 - 9.049 = 19.04

Griffin Industrial Realty Inc's Gross Profit for the quarter that ended in May. 2016 is calculated as

 Gross Profit (Q: May. 2016 ) = Revenue - Cost of Goods Sold = 6.524 - 1.992 = 4.53

Griffin Industrial Realty Inc Gross Profit for the trailing twelve months (TTM) ended in May. 2016 was 5.897 (Aug. 2015 ) + 5.32 (Nov. 2015 ) + 4.516 (Feb. 2016 ) + 4.532 (May. 2016 ) = \$20.27 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. 2016 is calculated as

 Gross Margin (Q: May. 2016 ) = Gross Profit (Q: May. 2016 ) / Revenue (Q: May. 2016 ) = (Revenue - Cost of Goods Sold) / Revenue = 4.53 / 6.524 = 69.47 %

* 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 69.47% for the quarter that ended in May. 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 own currency.

Griffin Industrial Realty Inc Annual Data

 Nov06 Nov07 Nov08 Nov09 Nov10 Nov11 Nov12 Nov13 Nov14 Nov15 Gross_Profit 12.29 21.46 1.38 5.31 6.24 15.00 16.53 16.90 15.62 19.04

Griffin Industrial Realty Inc Quarterly Data

 Feb14 May14 Aug14 Nov14 Feb15 May15 Aug15 Nov15 Feb16 May16 Gross_Profit 2.58 3.52 4.07 5.44 3.62 4.21 5.90 5.32 4.52 4.53
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