Switch to:
Jack Henry & Associates Inc (NAS:JKHY)
Gross Profit
USD 566 Mil (TTM As of Mar. 2016)

Jack Henry & Associates Inc's gross profit for the three months ended in Mar. 2016 was USD 139 Mil. Jack Henry & Associates Inc's gross profit for the trailing twelve months (TTM) ended in Mar. 2016 was USD 566 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Jack Henry & Associates Inc's gross profit for the three months ended in Mar. 2016 was USD 139 Mil. Jack Henry & Associates Inc's revenue for the three months ended in Mar. 2016 was USD 333 Mil. Therefore, Jack Henry & Associates Inc's Gross Margin for the quarter that ended in Mar. 2016 was 41.69%.

Jack Henry & Associates Inc had a gross margin of 41.69% for the quarter that ended in Mar. 2016 => Durable competitive advantage

During the past 13 years, the highest Gross Margin of Jack Henry & Associates Inc was 43.30%. The lowest was 40.16%. And the median was 41.79%.


Definition

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

Jack Henry & Associates Inc's Gross Profit for the fiscal year that ended in Jun. 2015 is calculated as

Gross Profit (A: Jun. 2015 )=Revenue - Cost of Goods Sold
=1256.19 - 720.336
=536

Jack Henry & Associates Inc's Gross Profit for the quarter that ended in Mar. 2016 is calculated as

Gross Profit (Q: Mar. 2016 )=Revenue - Cost of Goods Sold
=333.186 - 194.273
=139

Jack Henry & Associates Inc Gross Profit for the trailing twelve months (TTM) ended in Mar. 2016 was 146.415 (Jun. 2015 ) + 137.955 (Sep. 2015 ) + 142.427 (Dec. 2015 ) + 138.913 (Mar. 2016 ) = USD 566 Mil.

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

Jack Henry & Associates Inc's Gross Margin for the quarter that ended in Mar. 2016 is calculated as

Gross Margin (Q: Mar. 2016 )=Gross Profit (Q: Mar. 2016 ) / Revenue (Q: Mar. 2016 )
=(Revenue - Cost of Goods Sold) / Revenue
=139 / 333.186
=41.69 %

* 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

Jack Henry & Associates Inc had a gross margin of 41.69% for the quarter that ended in Mar. 2016 => 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.

Jack Henry & Associates Inc Annual Data

Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14Jun15
Gross_Profit 256286307299345399424477519536

Jack Henry & Associates Inc Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
Gross_Profit 123117136127131132146138142139
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)
FEEDBACK