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ZBB Energy Corp (AMEX:ZBB)
Gross Profit
\$4.21 Mil (TTM As of Dec. 2014)

ZBB Energy Corp's gross profit for the three months ended in Dec. 2014 was \$0.07 Mil. ZBB Energy Corp's gross profit for the trailing twelve months (TTM) ended in Dec. 2014 was \$4.21 Mil.

Gross Margin is calculated as gross profit divided by its revenue. ZBB Energy Corp's gross profit for the three months ended in Dec. 2014 was \$0.07 Mil. ZBB Energy Corp's revenue for the three months ended in Dec. 2014 was \$0.30 Mil. Therefore, ZBB Energy Corp's Gross Margin for the quarter that ended in Dec. 2014 was 22.92%.

ZBB Energy Corp had a gross margin of 22.92% for the quarter that ended in Dec. 2014 => Competition eroding margins

During the past 10 years, the highest Gross Margin of ZBB Energy Corp was 76.48%. The lowest was -82.20%. And the median was 16.77%.

Definition

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

ZBB Energy Corp's Gross Profit for the fiscal year that ended in Jun. 2014 is calculated as

 Gross Profit (A: Jun. 2014 ) = Revenue - Cost of Goods Sold = 7.852 - 3.102 = 4.75

ZBB Energy Corp's Gross Profit for the quarter that ended in Dec. 2014 is calculated as

 Gross Profit (Q: Dec. 2014 ) = Revenue - Cost of Goods Sold = 0.301 - 0.232 = 0.07

ZBB Energy Corp Gross Profit for the trailing twelve months (TTM) ended in Dec. 2014 was 3.96 (Mar. 2014 ) + -0.045 (Jun. 2014 ) + 0.229 (Sep. 2014 ) + 0.069 (Dec. 2014 ) = \$4.21 Mil.

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

ZBB Energy Corp's Gross Margin for the quarter that ended in Dec. 2014 is calculated as

 Gross Margin (Q: Dec. 2014 ) = Gross Profit (Q: Dec. 2014 ) / Revenue (Q: Dec. 2014 ) = (Revenue - Cost of Goods Sold) / Revenue = 0.07 / 0.301 = 22.92 %

* 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

ZBB Energy Corp had a gross margin of 22.92% for the quarter that ended in Dec. 2014 => Competition eroding margins

Related Terms

Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

ZBB Energy Corp Annual Data

 Jun05 Jun06 Jun07 Jun08 Jun09 Jun10 Jun11 Jun12 Jun13 Jun14 Gross_Profit 0.00 0.01 0.04 0.98 -0.95 -1.19 0.70 1.69 1.30 4.75

ZBB Energy Corp Quarterly Data

 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Gross_Profit 0.29 0.48 0.30 0.23 0.47 0.36 3.96 -0.05 0.23 0.07
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