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Bio-Reference Laboratories Inc (NAS:BRLI)
Gross Profit
$370.0 Mil (TTM As of Oct. 2014)

Bio-Reference Laboratories Inc's gross profit for the three months ended in Oct. 2014 was $106.9 Mil. Bio-Reference Laboratories Inc's gross profit for the trailing twelve months (TTM) ended in Oct. 2014 was $370.0 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 Oct. 2014 was $106.9 Mil. Bio-Reference Laboratories Inc's revenue for the three months ended in Oct. 2014 was $227.6 Mil. Therefore, Bio-Reference Laboratories Inc's Gross Margin for the quarter that ended in Oct. 2014 was 46.95%.

Bio-Reference Laboratories Inc had a gross margin of 46.95% for the quarter that ended in Oct. 2014 => Durable competitive advantage

During the past 13 years, the highest Gross Margin of Bio-Reference Laboratories Inc was 53.33%. The lowest was 44.46%. And the median was 48.69%.

Warning Sign:

Bio-Reference Laboratories Inc gross margin has been in long term decline. The average rate of decline per year is -2.5%.


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 Oct. 2014 is calculated as

Gross Profit (Q: Oct. 2014 )=Revenue - Cost of Goods Sold
=227.594 - 120.741
=106.9

Bio-Reference Laboratories Inc Gross Profit for the trailing twelve months (TTM) ended in Oct. 2014 was 72.154 (Jan. 2014 ) + 88.549 (Apr. 2014 ) + 102.443 (Jul. 2014 ) + 106.853 (Oct. 2014 ) = $370.0 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 Oct. 2014 is calculated as

Gross Margin (Q: Oct. 2014 )=Gross Profit (Q: Oct. 2014 ) / Revenue (Q: Oct. 2014 )
=(Revenue - Cost of Goods Sold) / Revenue
=106.9 / 227.594
=46.95 %

* 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 46.95% for the quarter that ended in Oct. 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.

Bio-Reference Laboratories Inc Annual Data

Oct05Oct06Oct07Oct08Oct09Oct10Oct11Oct12Oct13Oct14
Gross_Profit 80.597.1126.4147.2179.1225.8270.8276.6322.5370.0

Bio-Reference Laboratories Inc Quarterly Data

Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14
Gross_Profit 74.374.770.980.785.785.372.288.5102.4106.9
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