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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

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.

PSS World Medical, Inc. Annual Data

Mar03Mar04Mar05Mar06Mar07Mar08Mar09Mar10Mar11Mar12
Gross_Profit 336385423467500542582628636674

PSS World Medical, Inc. Semi-Annual Data

Jun10Sep10Dec10Mar11Jun11Sep11Dec11Mar12Jun12Sep12
Gross_Profit 148157158173161167170176136142
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