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Nicholas Financial Inc (NAS:NICK)
Gross Profit
$74.03 Mil (TTM As of Sep. 2016)

Nicholas Financial Inc's gross profit for the three months ended in Sep. 2016 was $13.80 Mil. Nicholas Financial Inc's gross profit for the trailing twelve months (TTM) ended in Sep. 2016 was $74.03 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Nicholas Financial Inc's gross profit for the three months ended in Sep. 2016 was $13.80 Mil. Nicholas Financial Inc's revenue for the three months ended in Sep. 2016 was $22.65 Mil. Therefore, Nicholas Financial Inc's Gross Margin for the quarter that ended in Sep. 2016 was 60.91%.

Nicholas Financial Inc had a gross margin of 60.91% for the quarter that ended in Sep. 2016 => Durable competitive advantage

During the past 13 years, the highest Gross Margin of Nicholas Financial Inc was 100.00%. The lowest was 80.86%. And the median was 99.99%.


Definition

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

Nicholas Financial Inc's Gross Profit for the fiscal year that ended in Mar. 2016 is calculated as

Gross Profit (A: Mar. 2016 )=Revenue - Cost of Goods Sold
=90.707 - 0
=90.71

Nicholas Financial Inc's Gross Profit for the quarter that ended in Sep. 2016 is calculated as

Gross Profit (Q: Sep. 2016 )=Revenue - Cost of Goods Sold
=22.647 - 8.852
=13.80

Nicholas Financial Inc Gross Profit for the trailing twelve months (TTM) ended in Sep. 2016 was 22.757 (Dec. 2015 ) + 23.238 (Mar. 2016 ) + 14.241 (Jun. 2016 ) + 13.795 (Sep. 2016 ) = $74.03 Mil.

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

Nicholas Financial Inc's Gross Margin for the quarter that ended in Sep. 2016 is calculated as

Gross Margin (Q: Sep. 2016 )=Gross Profit (Q: Sep. 2016 ) / Revenue (Q: Sep. 2016 )
=(Revenue - Cost of Goods Sold) / Revenue
=13.80 / 22.647
=60.91 %

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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

Nicholas Financial Inc had a gross margin of 60.91% for the quarter that ended in Sep. 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 local exchange's currency.

Nicholas Financial Inc Annual Data

Mar07Mar08Mar09Mar10Mar11Mar12Mar13Mar14Mar15Mar16
Gross_Profit 46.6950.0553.0956.4562.7680.5082.1182.6286.790.00

Nicholas Financial Inc Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
Gross_Profit 21.3321.7221.80-422.7222.0322.6922.7623.2414.2413.80
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