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Bio-Reference Laboratories Inc (NAS:BRLI)
Gross Profit
\$398.0 Mil (TTM As of Apr. 2015)

Bio-Reference Laboratories Inc's gross profit for the three months ended in Apr. 2015 was \$99.0 Mil. Bio-Reference Laboratories Inc's gross profit for the trailing twelve months (TTM) ended in Apr. 2015 was \$398.0 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Bio-Reference Laboratories Inc's gross profit for the three months ended in Apr. 2015 was \$99.0 Mil. Bio-Reference Laboratories Inc's revenue for the three months ended in Apr. 2015 was \$224.0 Mil. Therefore, Bio-Reference Laboratories Inc's Gross Margin for the quarter that ended in Apr. 2015 was 44.19%.

Bio-Reference Laboratories Inc had a gross margin of 44.19% for the quarter that ended in Apr. 2015 => Durable competitive advantage

Definition

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

Bio-Reference Laboratories Inc's Gross Profit for the fiscal year that ended in Oct. 2014 is calculated as

 Gross Profit (A: Oct. 2014 ) = Revenue - Cost of Goods Sold = 832.282 - 462.283 = 370.0

Bio-Reference Laboratories Inc's Gross Profit for the quarter that ended in Apr. 2015 is calculated as

 Gross Profit (Q: Apr. 2015 ) = Revenue - Cost of Goods Sold = 223.986 - 125.003 = 99.0

Bio-Reference Laboratories Inc Gross Profit for the trailing twelve months (TTM) ended in Apr. 2015 was 102.443 (Jul. 2014 ) + 106.853 (Oct. 2014 ) + 89.755 (Jan. 2015 ) + 98.983 (Apr. 2015 ) = \$398.0 Mil.

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

Bio-Reference Laboratories Inc's Gross Margin for the quarter that ended in Apr. 2015 is calculated as

 Gross Margin (Q: Apr. 2015 ) = Gross Profit (Q: Apr. 2015 ) / Revenue (Q: Apr. 2015 ) = (Revenue - Cost of Goods Sold) / Revenue = 99.0 / 223.986 = 44.19 %

* 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

Bio-Reference Laboratories Inc had a gross margin of 44.19% for the quarter that ended in Apr. 2015 => Durable competitive advantage

Related Terms

Historical Data

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

Bio-Reference Laboratories Inc Annual Data

 Oct05 Oct06 Oct07 Oct08 Oct09 Oct10 Oct11 Oct12 Oct13 Oct14 Gross_Profit 80.5 97.1 126.4 147.2 179.1 225.8 270.8 276.6 322.5 370.0

Bio-Reference Laboratories Inc Quarterly Data

 Jan13 Apr13 Jul13 Oct13 Jan14 Apr14 Jul14 Oct14 Jan15 Apr15 Gross_Profit 70.9 80.7 85.7 85.3 72.2 88.5 102.4 106.9 89.8 99.0
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