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Oil-Dri Corp of America (NYSE:ODC)
Gross Profit
$66.4 Mil (TTM As of Jan. 2014)

Oil-Dri Corp of America's gross profit for the three months ended in Jan. 2014 was $16.9 Mil. Oil-Dri Corp of America's gross profit for the trailing twelve months (TTM) ended in Jan. 2014 was $66.4 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Oil-Dri Corp of America's gross profit for the three months ended in Jan. 2014 was $16.9 Mil. Oil-Dri Corp of America's revenue for the three months ended in Jan. 2014 was $69.3 Mil. Therefore, Oil-Dri Corp of America's Gross Margin for the quarter that ended in Jan. 2014 was 24.37%.

Oil-Dri Corp of America had a gross margin of 24.37% for the quarter that ended in Jan. 2014 => Competition eroding margins

During the past 13 years, the highest Gross Margin of Oil-Dri Corp of America was 36.44%. The lowest was 18.55%. And the median was 22.69%.


Definition

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

Oil-Dri Corp of America's Gross Profit for the fiscal year that ended in Jul. 2013 is calculated as

Gross Profit (A: Jul. 2013 )=Revenue - Cost of Goods Sold
=250.583 - 184.084
=66.5

Oil-Dri Corp of America's Gross Profit for the quarter that ended in Jan. 2014 is calculated as

Gross Profit (Q: Jan. 2014 )=Revenue - Cost of Goods Sold
=69.305 - 52.412
=16.9

Oil-Dri Corp of America Gross Profit for the trailing twelve months (TTM) ended in Jan. 2014 was 16.891 (Apr. 2013 ) + 16.108 (Jul. 2013 ) + 16.5 (Oct. 2013 ) + 16.893 (Jan. 2014 ) = $66.4 Mil.

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

Oil-Dri Corp of America's Gross Margin for the quarter that ended in Jan. 2014 is calculated as

Gross Margin (Q: Jan. 2014 )=Gross Profit (Q: Jan. 2014 ) / Revenue (Q: Jan. 2014 )
=(Revenue - Cost of Goods Sold) / Revenue
=16.9 / 69.305
=24.37 %

* 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

Oil-Dri Corp of America had a gross margin of 24.37% for the quarter that ended in Jan. 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.

Oil-Dri Corp of America Annual Data

Jul04Jul05Jul06Jul07Jul08Jul09Jul10Jul11Jul12Jul13
Gross_Profit 43.240.438.145.746.149.449.750.059.066.5

Oil-Dri Corp of America Quarterly Data

Oct11Jan12Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14
Gross_Profit 14.214.614.715.517.216.316.916.116.516.9
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