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Oil-Dri Corp of America (NYSE:ODC)
Gross Profit
$56.9 Mil (TTM As of Oct. 2014)

Oil-Dri Corp of America's gross profit for the three months ended in Oct. 2014 was $13.8 Mil. Oil-Dri Corp of America's gross profit for the trailing twelve months (TTM) ended in Oct. 2014 was $56.9 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 Oct. 2014 was $13.8 Mil. Oil-Dri Corp of America's revenue for the three months ended in Oct. 2014 was $66.0 Mil. Therefore, Oil-Dri Corp of America's Gross Margin for the quarter that ended in Oct. 2014 was 20.85%.

Oil-Dri Corp of America had a gross margin of 20.85% for the quarter that ended in Oct. 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. 2014 is calculated as

Gross Profit (A: Jul. 2014 )=Revenue - Cost of Goods Sold
=266.313 - 206.663
=59.7

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

Gross Profit (Q: Oct. 2014 )=Revenue - Cost of Goods Sold
=66.044 - 52.275
=13.8

Oil-Dri Corp of America Gross Profit for the trailing twelve months (TTM) ended in Oct. 2014 was 16.893 (Jan. 2014 ) + 13.884 (Apr. 2014 ) + 12.373 (Jul. 2014 ) + 13.769 (Oct. 2014 ) = $56.9 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 Oct. 2014 is calculated as

Gross Margin (Q: Oct. 2014 )=Gross Profit (Q: Oct. 2014 ) / Revenue (Q: Oct. 2014 )
=(Revenue - Cost of Goods Sold) / Revenue
=13.8 / 66.044
=20.85 %

* 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 20.85% for the quarter that ended in Oct. 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

Jul05Jul06Jul07Jul08Jul09Jul10Jul11Jul12Jul13Jul14
Gross_Profit 40.438.145.746.149.449.750.059.066.559.7

Oil-Dri Corp of America Quarterly Data

Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14
Gross_Profit 15.517.216.316.916.116.516.913.912.413.8
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