Switch to:
J&J Snack Foods Corp (NAS:JJSF)
Gross Profit
$269.1 Mil (TTM As of Dec. 2013)

J&J Snack Foods Corp's gross profit for the three months ended in Dec. 2013 was $59.9 Mil. J&J Snack Foods Corp's gross profit for the trailing twelve months (TTM) ended in Dec. 2013 was $269.1 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 Dec. 2013 was $59.9 Mil. J&J Snack Foods Corp's revenue for the three months ended in Dec. 2013 was $203.5 Mil. Therefore, J&J Snack Foods Corp's Gross Margin for the quarter that ended in Dec. 2013 was 29.43%.

J&J Snack Foods Corp had a gross margin of 29.43% for the quarter that ended in Dec. 2013 => 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 Dec. 2013 is calculated as

Gross Profit (Q: Dec. 2013 )=Revenue - Cost of Goods Sold
=203.523 - 143.617
=59.9

J&J Snack Foods Corp Gross Profit for the trailing twelve months (TTM) ended in Dec. 2013 was 58.151 (Mar. 2013 ) + 75.322 (Jun. 2013 ) + 75.694 (Sep. 2013 ) + 59.906 (Dec. 2013 ) = $269.1 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 Dec. 2013 is calculated as

Gross Margin (Q: Dec. 2013 )=Gross Profit (Q: Dec. 2013 ) / Revenue (Q: Dec. 2013 )
=(Revenue - Cost of Goods Sold) / Revenue
=59.9 / 203.523
=29.43 %

* 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 29.43% for the quarter that ended in Dec. 2013 => 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

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
Gross_Profit 67.146.454.072.577.354.158.275.375.759.9
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)
Free 7-day Trial
FEEDBACK
Hide