Switch to:
Spectrum Brands Holdings Inc (NYSE:SPB)
Gross Profit
$1,569 Mil (TTM As of Sep. 2014)

Spectrum Brands Holdings Inc's gross profit for the three months ended in Sep. 2014 was $411 Mil. Spectrum Brands Holdings Inc's gross profit for the trailing twelve months (TTM) ended in Sep. 2014 was $1,569 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Spectrum Brands Holdings Inc's gross profit for the three months ended in Sep. 2014 was $411 Mil. Spectrum Brands Holdings Inc's revenue for the three months ended in Sep. 2014 was $1,178 Mil. Therefore, Spectrum Brands Holdings Inc's Gross Margin for the quarter that ended in Sep. 2014 was 34.88%.

Spectrum Brands Holdings Inc had a gross margin of 34.88% for the quarter that ended in Sep. 2014 => Competition eroding margins

During the past 6 years, the highest Gross Margin of Spectrum Brands Holdings Inc was 36.59%. The lowest was 34.03%. And the median was 35.42%.


Definition

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

Spectrum Brands Holdings 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
=4429.109 - 2860.24
=1,569

Spectrum Brands Holdings 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
=1178.312 - 767.311
=411

Spectrum Brands Holdings Inc Gross Profit for the trailing twelve months (TTM) ended in Sep. 2014 was 381.207 (Dec. 2013 ) + 359.624 (Mar. 2014 ) + 417.037 (Jun. 2014 ) + 411.001 (Sep. 2014 ) = $1,569 Mil.

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

Spectrum Brands Holdings 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
=411 / 1178.312
=34.88 %

* 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

Spectrum Brands Holdings Inc had a gross margin of 34.88% 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.

Spectrum Brands Holdings Inc Annual Data

Sep09Sep10Sep11Sep12Sep13Sep14
Gross_Profit 00008169211,1291,1161,3901,569

Spectrum Brands Holdings Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
Gross_Profit 292280288323383396381360417411
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)
Free 7-day Trial
FEEDBACK