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J&J Snack Foods Corp (NAS:JJSF)
Gross Profit
$281.1 Mil (TTM As of Jun. 2014)

J&J Snack Foods Corp's gross profit for the three months ended in Jun. 2014 was $84.4 Mil. J&J Snack Foods Corp's gross profit for the trailing twelve months (TTM) ended in Jun. 2014 was $281.1 Mil.

Gross Margin is calculated as gross profit divided by its revenue. J&J Snack Foods Corp's gross profit for the three months ended in Jun. 2014 was $84.4 Mil. J&J Snack Foods Corp's revenue for the three months ended in Jun. 2014 was $257.1 Mil. Therefore, J&J Snack Foods Corp's Gross Margin for the quarter that ended in Jun. 2014 was 32.81%.

J&J Snack Foods Corp had a gross margin of 32.81% for the quarter that ended in Jun. 2014 => Competition eroding margins

During the past 13 years, the highest Gross Margin of J&J Snack Foods Corp was 60.21%. The lowest was 29.70%. And the median was 33.82%.


Definition

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

J&J Snack Foods Corp's Gross Profit for the fiscal year that ended in Sep. 2013 is calculated as

Gross Profit (A: Sep. 2013 )=Revenue - Cost of Goods Sold
=867.683 - 604.381
=263.3

J&J Snack Foods Corp's Gross Profit for the quarter that ended in Jun. 2014 is calculated as

Gross Profit (Q: Jun. 2014 )=Revenue - Cost of Goods Sold
=257.113 - 172.745
=84.4

J&J Snack Foods Corp Gross Profit for the trailing twelve months (TTM) ended in Jun. 2014 was 75.694 (Sep. 2013 ) + 59.906 (Dec. 2013 ) + 61.113 (Mar. 2014 ) + 84.368 (Jun. 2014 ) = $281.1 Mil.

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

J&J Snack Foods Corp's Gross Margin for the quarter that ended in Jun. 2014 is calculated as

Gross Margin (Q: Jun. 2014 )=Gross Profit (Q: Jun. 2014 ) / Revenue (Q: Jun. 2014 )
=(Revenue - Cost of Goods Sold) / Revenue
=84.4 / 257.113
=32.81 %

* 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

J&J Snack Foods Corp had a gross margin of 32.81% for the quarter that ended in Jun. 2014 => Competition eroding margins


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.

J&J Snack Foods Corp Annual Data

Sep04Sep05Sep06Sep07Sep08Sep09Sep10Sep11Sep12Sep13
Gross_Profit 140.2155.0172.4186.5186.9208.8227.8229.8250.2263.3

J&J Snack Foods Corp Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
Gross_Profit 54.072.577.354.158.275.375.759.961.184.4
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