Switch to:
Thermon Group Holdings Inc (NYSE:THR)
Gross Profit
$135.2 Mil (TTM As of Mar. 2014)

Thermon Group Holdings Inc's gross profit for the three months ended in Mar. 2014 was $32.7 Mil. Thermon Group Holdings Inc's gross profit for the trailing twelve months (TTM) ended in Mar. 2014 was $135.2 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Thermon Group Holdings Inc's gross profit for the three months ended in Mar. 2014 was $32.7 Mil. Thermon Group Holdings Inc's revenue for the three months ended in Mar. 2014 was $67.5 Mil. Therefore, Thermon Group Holdings Inc's Gross Margin for the quarter that ended in Mar. 2014 was 48.53%.

Thermon Group Holdings Inc had a gross margin of 48.53% for the quarter that ended in Mar. 2014 => Durable competitive advantage

During the past 5 years, the highest Gross Margin of Thermon Group Holdings Inc was 48.74%. The lowest was 46.77%. And the median was 47.99%.


Definition

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

Thermon Group Holdings Inc's Gross Profit for the fiscal year that ended in Mar. 2014 is calculated as

Gross Profit (A: Mar. 2014 )=Revenue - Cost of Goods Sold
=277.323 - 142.153
=135.2

Thermon Group Holdings Inc's Gross Profit for the quarter that ended in Mar. 2014 is calculated as

Gross Profit (Q: Mar. 2014 )=Revenue - Cost of Goods Sold
=67.475 - 34.73
=32.7

Thermon Group Holdings Inc Gross Profit for the trailing twelve months (TTM) ended in Mar. 2014 was 31.014 (Jun. 2013 ) + 35.355 (Sep. 2013 ) + 36.056 (Dec. 2013 ) + 32.745 (Mar. 2014 ) = $135.2 Mil.

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

Thermon Group Holdings Inc's Gross Margin for the quarter that ended in Mar. 2014 is calculated as

Gross Margin (Q: Mar. 2014 )=Gross Profit (Q: Mar. 2014 ) / Revenue (Q: Mar. 2014 )
=(Revenue - Cost of Goods Sold) / Revenue
=32.7 / 67.475
=48.53 %

* 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

Thermon Group Holdings Inc had a gross margin of 48.53% for the quarter that ended in Mar. 2014 => 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.

Thermon Group Holdings Inc Annual Data

Mar09Mar10Mar12Mar13Mar14
Gross_Profit 0.00.00.00.00.097.391.3132.1132.8135.2

Thermon Group Holdings Inc Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
Gross_Profit 33.734.533.332.635.031.931.035.436.132.7
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
Email Hide