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Sirona Dental Systems Inc (NAS:SIRO)
Gross Profit
$648 Mil (TTM As of Sep. 2015)

Sirona Dental Systems Inc's gross profit for the three months ended in Sep. 2015 was $167 Mil. Sirona Dental Systems Inc's gross profit for the trailing twelve months (TTM) ended in Sep. 2015 was $648 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Sirona Dental Systems Inc's gross profit for the three months ended in Sep. 2015 was $167 Mil. Sirona Dental Systems Inc's revenue for the three months ended in Sep. 2015 was $305 Mil. Therefore, Sirona Dental Systems Inc's Gross Margin for the quarter that ended in Sep. 2015 was 54.74%.

Sirona Dental Systems Inc had a gross margin of 54.74% for the quarter that ended in Sep. 2015 => Durable competitive advantage

During the past 13 years, the highest Gross Margin of Sirona Dental Systems Inc was 69.85%. The lowest was 45.65%. And the median was 53.21%.


Definition

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

Sirona Dental Systems Inc's Gross Profit for the fiscal year that ended in Sep. 2015 is calculated as

Gross Profit (A: Sep. 2015 )=Revenue - Cost of Goods Sold
=1161.3 - 513.1
=648

Sirona Dental Systems Inc's Gross Profit for the quarter that ended in Sep. 2015 is calculated as

Gross Profit (Q: Sep. 2015 )=Revenue - Cost of Goods Sold
=304.9 - 138
=167

Sirona Dental Systems Inc Gross Profit for the trailing twelve months (TTM) ended in Sep. 2015 was 162.9 (Dec. 2014 ) + 143.8 (Mar. 2015 ) + 174.6 (Jun. 2015 ) + 166.9 (Sep. 2015 ) = $648 Mil.

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

Sirona Dental Systems Inc's Gross Margin for the quarter that ended in Sep. 2015 is calculated as

Gross Margin (Q: Sep. 2015 )=Gross Profit (Q: Sep. 2015 ) / Revenue (Q: Sep. 2015 )
=(Revenue - Cost of Goods Sold) / Revenue
=167 / 304.9
=54.74 %

* 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

Sirona Dental Systems Inc had a gross margin of 54.74% for the quarter that ended in Sep. 2015 => Durable competitive advantage


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.

Sirona Dental Systems Inc Annual Data

Mar06Sep07Sep08Sep09Sep10Sep11Sep12Sep13Sep14Sep15
Gross_Profit 49304346346399484524591642648

Sirona Dental Systems Inc Quarterly Data

Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15
Gross_Profit 151143163152168160163144175167
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