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Bon-Ton Stores Inc (NAS:BONT)
Gross Profit
$1,065 Mil (TTM As of Jan. 2014)

Bon-Ton Stores Inc's gross profit for the three months ended in Jan. 2014 was $351 Mil. Bon-Ton Stores Inc's gross profit for the trailing twelve months (TTM) ended in Jan. 2014 was $1,065 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Bon-Ton Stores Inc's gross profit for the three months ended in Jan. 2014 was $351 Mil. Bon-Ton Stores Inc's revenue for the three months ended in Jan. 2014 was $935 Mil. Therefore, Bon-Ton Stores Inc's Gross Margin for the quarter that ended in Jan. 2014 was 37.61%.

Bon-Ton Stores Inc had a gross margin of 37.61% for the quarter that ended in Jan. 2014 => Competition eroding margins

During the past 13 years, the highest Gross Margin of Bon-Ton Stores Inc was 38.94%. The lowest was 36.14%. And the median was 36.99%.


Definition

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

Bon-Ton Stores Inc's Gross Profit for the fiscal year that ended in Jan. 2014 is calculated as

Gross Profit (A: Jan. 2014 )=Revenue - Cost of Goods Sold
=2834.06 - 1768.672
=1,065

Bon-Ton Stores Inc's Gross Profit for the quarter that ended in Jan. 2014 is calculated as

Gross Profit (Q: Jan. 2014 )=Revenue - Cost of Goods Sold
=934.619 - 583.144
=351

Bon-Ton Stores Inc Gross Profit for the trailing twelve months (TTM) ended in Jan. 2014 was 240.295 (Apr. 2013 ) + 219.977 (Jul. 2013 ) + 253.641 (Oct. 2013 ) + 351.475 (Jan. 2014 ) = $1,065 Mil.

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

Bon-Ton Stores Inc's Gross Margin for the quarter that ended in Jan. 2014 is calculated as

Gross Margin (Q: Jan. 2014 )=Gross Profit (Q: Jan. 2014 ) / Revenue (Q: Jan. 2014 )
=(Revenue - Cost of Goods Sold) / Revenue
=351 / 934.619
=37.61 %

* 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

Bon-Ton Stores Inc had a gross margin of 37.61% for the quarter that ended in Jan. 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.

Bon-Ton Stores Inc Annual Data

Jan05Jan06Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14
Gross_Profit 4894851,3371,3181,1901,1731,1861,1061,1051,065

Bon-Ton Stores Inc Quarterly Data

Oct11Jan12Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14
Gross_Profit 260366233227259386240220254351
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