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Bio-Reference Labs Inc (NAS:BRLI)
Gross Profit
$323.8 Mil (TTM As of Jan. 2014)

Bio-Reference Labs Inc's gross profit for the three months ended in Jan. 2014 was $72.2 Mil. Bio-Reference Labs Inc's gross profit for the trailing twelve months (TTM) ended in Jan. 2014 was $323.8 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Bio-Reference Labs Inc's gross profit for the three months ended in Jan. 2014 was $72.2 Mil. Bio-Reference Labs Inc's revenue for the three months ended in Jan. 2014 was $181.3 Mil. Therefore, Bio-Reference Labs Inc's Gross Margin for the quarter that ended in Jan. 2014 was 39.80%.

Bio-Reference Labs Inc had a gross margin of 39.80% for the quarter that ended in Jan. 2014 => Competition eroding margins

During the past 13 years, the highest Gross Margin of Bio-Reference Labs Inc was 53.33%. The lowest was 44.53%. And the median was 48.91%.

Warning Sign:

Bio-Reference Labs Inc gross margin has been in long term decline. The average rate of decline per year is -2%.


Definition

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

Bio-Reference Labs Inc's Gross Profit for the fiscal year that ended in Oct. 2013 is calculated as

Gross Profit (A: Oct. 2013 )=Revenue - Cost of Goods Sold
=715.354 - 392.815
=322.5

Bio-Reference Labs 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
=181.27 - 109.116
=72.2

Bio-Reference Labs Inc Gross Profit for the trailing twelve months (TTM) ended in Jan. 2014 was 80.676 (Apr. 2013 ) + 85.66 (Jul. 2013 ) + 85.281 (Oct. 2013 ) + 72.154 (Jan. 2014 ) = $323.8 Mil.

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

Bio-Reference Labs 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
=72.2 / 181.27
=39.80 %

* 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 Labs Inc had a gross margin of 39.80% 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.

Bio-Reference Labs Inc Annual Data

Oct04Oct05Oct06Oct07Oct08Oct09Oct10Oct11Oct12Oct13
Gross_Profit 68.080.597.1126.4147.2179.1225.8270.8276.6322.5

Bio-Reference Labs Inc Quarterly Data

Oct11Jan12Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14
Gross_Profit 74.960.167.574.374.770.980.785.785.372.2
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