Switch to:
Sirona Dental Systems Inc (NAS:SIRO)
Gross Profit
$641 Mil (TTM As of Jun. 2015)

Sirona Dental Systems Inc's gross profit for the three months ended in Jun. 2015 was $175 Mil. Sirona Dental Systems Inc's gross profit for the trailing twelve months (TTM) ended in Jun. 2015 was $641 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 Jun. 2015 was $175 Mil. Sirona Dental Systems Inc's revenue for the three months ended in Jun. 2015 was $306 Mil. Therefore, Sirona Dental Systems Inc's Gross Margin for the quarter that ended in Jun. 2015 was 57.04%.

Sirona Dental Systems Inc had a gross margin of 57.04% for the quarter that ended in Jun. 2015 => Durable competitive advantage

During the past 13 years, the highest Gross Margin of Sirona Dental Systems Inc was 71.66%. The lowest was 12.12%. And the median was 53.50%.


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. 2014 is calculated as

Gross Profit (A: Sep. 2014 )=Revenue - Cost of Goods Sold
=1171.1 - 529.4
=642

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

Gross Profit (Q: Jun. 2015 )=Revenue - Cost of Goods Sold
=306.1 - 131.5
=175

Sirona Dental Systems Inc Gross Profit for the trailing twelve months (TTM) ended in Jun. 2015 was 159.9 (Sep. 2014 ) + 162.9 (Dec. 2014 ) + 143.8 (Mar. 2015 ) + 174.6 (Jun. 2015 ) = $641 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 Jun. 2015 is calculated as

Gross Margin (Q: Jun. 2015 )=Gross Profit (Q: Jun. 2015 ) / Revenue (Q: Jun. 2015 )
=(Revenue - Cost of Goods Sold) / Revenue
=175 / 306.1
=57.04 %

* 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 57.04% for the quarter that ended in Jun. 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

Mar05Mar06Sep07Sep08Sep09Sep10Sep11Sep12Sep13Sep14
Gross_Profit 3849304346346399484524591642

Sirona Dental Systems Inc Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
Gross_Profit 145151143163152168160163144175
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GuruFocus Premium Plus Membership

FEEDBACK