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Oil-Dri Corp of America (NYSE:ODC)
Gross Profit
$67.0 Mil (TTM As of Oct. 2015)

Oil-Dri Corp of America's gross profit for the three months ended in Oct. 2015 was $20.7 Mil. Oil-Dri Corp of America's gross profit for the trailing twelve months (TTM) ended in Oct. 2015 was $67.0 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. 2015 was $20.7 Mil. Oil-Dri Corp of America's revenue for the three months ended in Oct. 2015 was $67.8 Mil. Therefore, Oil-Dri Corp of America's Gross Margin for the quarter that ended in Oct. 2015 was 30.46%.

Oil-Dri Corp of America had a gross margin of 30.46% for the quarter that ended in Oct. 2015 => Competition eroding margins

During the past 13 years, the highest Gross Margin of Oil-Dri Corp of America was 26.54%. The lowest was 18.55%. And the median was 22.24%.


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. 2015 is calculated as

Gross Profit (A: Jul. 2015 )=Revenue - Cost of Goods Sold
=261.402 - 201.245
=60.2

Oil-Dri Corp of America's Gross Profit for the quarter that ended in Oct. 2015 is calculated as

Gross Profit (Q: Oct. 2015 )=Revenue - Cost of Goods Sold
=67.795 - 47.142
=20.7

Oil-Dri Corp of America Gross Profit for the trailing twelve months (TTM) ended in Oct. 2015 was 15.233 (Jan. 2015 ) + 14.433 (Apr. 2015 ) + 16.722 (Jul. 2015 ) + 20.653 (Oct. 2015 ) = $67.0 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. 2015 is calculated as

Gross Margin (Q: Oct. 2015 )=Gross Profit (Q: Oct. 2015 ) / Revenue (Q: Oct. 2015 )
=(Revenue - Cost of Goods Sold) / Revenue
=20.7 / 67.795
=30.46 %

* 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 30.46% for the quarter that ended in Oct. 2015 => 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

Jul06Jul07Jul08Jul09Jul10Jul11Jul12Jul13Jul14Jul15
Gross_Profit 38.145.746.149.449.750.059.066.559.760.2

Oil-Dri Corp of America Quarterly Data

Jul13Oct13Jan14Apr14Jul14Oct14Jan15Apr15Jul15Oct15
Gross_Profit 16.116.516.913.912.413.815.214.416.720.7
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