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PSS World Medical, Inc. (NAS:PSSI)
Gross Profit
\$674 Mil (TTM As of Sep. 2012)

PSS World Medical, Inc.'s gross profit for the six months ended in Sep. 2012 was \$142 Mil. PSS World Medical, Inc.'s gross profit for the trailing twelve months (TTM) ended in Sep. 2012 was \$674 Mil.

Gross Margin is calculated as gross profit divided by its revenue. PSS World Medical, Inc.'s gross profit for the six months ended in Sep. 2012 was \$142 Mil. PSS World Medical, Inc.'s revenue for the six months ended in Sep. 2012 was \$421 Mil. Therefore, PSS World Medical, Inc.'s Gross Margin for the quarter that ended in Sep. 2012 was 33.79%.

PSS World Medical, Inc. had a gross margin of 33.79% for the quarter that ended in Sep. 2012 => Competition eroding margins

During the past 13 years, the highest Gross Margin of PSS World Medical, Inc. was 32.10%. The lowest was 22.90%. And the median was 28.70%.

Definition

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

PSS World Medical, Inc.'s Gross Profit for the fiscal year that ended in Mar. 2012 is calculated as

 Gross Profit (A: Mar. 2012 ) = Revenue - Cost of Goods Sold = 2102.002 - 1427.799 = 674

PSS World Medical, Inc.'s Gross Profit for the quarter that ended in Sep. 2012 is calculated as

 Gross Profit (Q: Sep. 2012 ) = Revenue - Cost of Goods Sold = 420.798 - 278.622 = 142

For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. PSS World Medical, Inc. Gross Profit for the trailing twelve months (TTM) ended in Sep. 2012 was \$674 Mil.

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

PSS World Medical, Inc.'s Gross Margin for the quarter that ended in Sep. 2012 is calculated as

 Gross Margin (Q: Sep. 2012 ) = Gross Profit (Q: Sep. 2012 ) / Revenue (Q: Sep. 2012 ) = (Revenue - Cost of Goods Sold) / Revenue = 142 / 420.798 = 33.79 %

* 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

PSS World Medical, Inc. had a gross margin of 33.79% for the quarter that ended in Sep. 2012 => Competition eroding margins

Related Terms

Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

PSS World Medical, Inc. Annual Data

 Mar03 Mar04 Mar05 Mar06 Mar07 Mar08 Mar09 Mar10 Mar11 Mar12 Gross_Profit 336 385 423 467 500 542 582 628 636 674

PSS World Medical, Inc. Semi-Annual Data

 Jun10 Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Gross_Profit 148 157 158 173 161 167 170 176 136 142
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