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Stewart Enterprises, Inc. (NAS:STEI)
Gross Profit
$113.6 Mil (TTM As of Oct. 2013)

Stewart Enterprises, Inc.'s gross profit for the three months ended in Oct. 2013 was $26.1 Mil. Stewart Enterprises, Inc.'s gross profit for the trailing twelve months (TTM) ended in Oct. 2013 was $113.6 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Stewart Enterprises, Inc.'s gross profit for the three months ended in Oct. 2013 was $26.1 Mil. Stewart Enterprises, Inc.'s revenue for the three months ended in Oct. 2013 was $127.5 Mil. Therefore, Stewart Enterprises, Inc.'s Gross Margin for the quarter that ended in Oct. 2013 was 20.50%.

Stewart Enterprises, Inc. had a gross margin of 20.50% for the quarter that ended in Oct. 2013 => Competition eroding margins

During the past 13 years, the highest Gross Margin of Stewart Enterprises, Inc. was 36.20%. The lowest was 18.01%. And the median was 22.99%.


Definition

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

Stewart Enterprises, Inc.'s Gross Profit for the fiscal year that ended in Oct. 2013 is calculated as

Gross Profit (A: Oct. 2013 )=Revenue - Cost of Goods Sold
=524.057 - 410.447
=113.6

Stewart Enterprises, Inc.'s Gross Profit for the quarter that ended in Oct. 2013 is calculated as

Gross Profit (Q: Oct. 2013 )=Revenue - Cost of Goods Sold
=127.461 - 101.329
=26.1

Stewart Enterprises, Inc. Gross Profit for the trailing twelve months (TTM) ended in Oct. 2013 was 32.316 (Jan. 2013 ) + 31.967 (Apr. 2013 ) + 23.195 (Jul. 2013 ) + 26.132 (Oct. 2013 ) = $113.6 Mil.

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

Stewart Enterprises, Inc.'s Gross Margin for the quarter that ended in Oct. 2013 is calculated as

Gross Margin (Q: Oct. 2013 )=Gross Profit (Q: Oct. 2013 ) / Revenue (Q: Oct. 2013 )
=(Revenue - Cost of Goods Sold) / Revenue
=26.1 / 127.461
=20.50 %

* 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

Stewart Enterprises, Inc. had a gross margin of 20.50% for the quarter that ended in Oct. 2013 => 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.

Stewart Enterprises, Inc. Annual Data

Oct04Oct05Oct06Oct07Oct08Oct09Oct10Oct11Oct12Oct13
Gross_Profit 115.0101.5114.6112.4100.687.696.7100.4109.7113.6

Stewart Enterprises, Inc. Quarterly Data

Jul11Oct11Jan12Apr12Jul12Oct12Jan13Apr13Jul13Oct13
Gross_Profit 21.824.725.429.127.028.232.332.023.226.1
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