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Sturm Ruger & Co Inc (NYSE:RGR)
Gross Profit
$198.8 Mil (TTM As of Sep. 2014)

Sturm Ruger & Co Inc's gross profit for the three months ended in Sep. 2014 was $23.7 Mil. Sturm Ruger & Co Inc's gross profit for the trailing twelve months (TTM) ended in Sep. 2014 was $198.8 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Sturm Ruger & Co Inc's gross profit for the three months ended in Sep. 2014 was $23.7 Mil. Sturm Ruger & Co Inc's revenue for the three months ended in Sep. 2014 was $98.3 Mil. Therefore, Sturm Ruger & Co Inc's Gross Margin for the quarter that ended in Sep. 2014 was 24.14%.

Sturm Ruger & Co Inc had a gross margin of 24.14% for the quarter that ended in Sep. 2014 => Competition eroding margins

During the past 13 years, the highest Gross Margin of Sturm Ruger & Co Inc was 38.80%. The lowest was 14.46%. And the median was 32.62%.


Definition

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

Sturm Ruger & Co Inc's Gross Profit for the fiscal year that ended in Dec. 2013 is calculated as

Gross Profit (A: Dec. 2013 )=Revenue - Cost of Goods Sold
=688.276 - 429.671
=258.6

Sturm Ruger & Co Inc's Gross Profit for the quarter that ended in Sep. 2014 is calculated as

Gross Profit (Q: Sep. 2014 )=Revenue - Cost of Goods Sold
=98.327 - 74.589
=23.7

Sturm Ruger & Co Inc Gross Profit for the trailing twelve months (TTM) ended in Sep. 2014 was 63.632 (Dec. 2013 ) + 61.123 (Mar. 2014 ) + 50.353 (Jun. 2014 ) + 23.738 (Sep. 2014 ) = $198.8 Mil.

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

Sturm Ruger & Co Inc's Gross Margin for the quarter that ended in Sep. 2014 is calculated as

Gross Margin (Q: Sep. 2014 )=Gross Profit (Q: Sep. 2014 ) / Revenue (Q: Sep. 2014 )
=(Revenue - Cost of Goods Sold) / Revenue
=23.7 / 98.327
=24.14 %

* 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

Sturm Ruger & Co Inc had a gross margin of 24.14% for the quarter that ended in Sep. 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.

Sturm Ruger & Co Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Gross_Profit 29.926.424.239.342.887.684.0111.8179.0258.6

Sturm Ruger & Co Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
Gross_Profit 45.142.649.561.370.762.963.661.150.423.7
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