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GuruFocus has detected 4 Warning Signs with Cryo-Cell International Inc $CCEL.
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Cryo-Cell International Inc (OTCPK:CCEL)
Gross Profit
$17.35 Mil (TTM As of Nov. 2016)

Cryo-Cell International Inc's gross profit for the three months ended in Nov. 2016 was $4.43 Mil. Cryo-Cell International Inc's gross profit for the trailing twelve months (TTM) ended in Nov. 2016 was $17.35 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Cryo-Cell International Inc's gross profit for the three months ended in Nov. 2016 was $4.43 Mil. Cryo-Cell International Inc's revenue for the three months ended in Nov. 2016 was $5.87 Mil. Therefore, Cryo-Cell International Inc's Gross Margin for the quarter that ended in Nov. 2016 was 75.40%.

Cryo-Cell International Inc had a gross margin of 75.40% for the quarter that ended in Nov. 2016 => Durable competitive advantage

During the past 13 years, the highest Gross Margin of Cryo-Cell International Inc was 75.45%. The lowest was 62.25%. And the median was 73.05%.


Definition

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

Cryo-Cell International Inc's Gross Profit for the fiscal year that ended in Nov. 2016 is calculated as

Gross Profit (A: Nov. 2016 )=Revenue - Cost of Goods Sold
=23.128 - 5.775
=17.35

Cryo-Cell International Inc's Gross Profit for the quarter that ended in Nov. 2016 is calculated as

Gross Profit (Q: Nov. 2016 )=Revenue - Cost of Goods Sold
=5.871 - 1.444
=4.43

Cryo-Cell International Inc Gross Profit for the trailing twelve months (TTM) ended in Nov. 2016 was 3.804 (Feb. 2016 ) + 4.342 (May. 2016 ) + 4.781 (Aug. 2016 ) + 4.427 (Nov. 2016 ) = $17.35 Mil.

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

Cryo-Cell International Inc's Gross Margin for the quarter that ended in Nov. 2016 is calculated as

Gross Margin (Q: Nov. 2016 )=Gross Profit (Q: Nov. 2016 ) / Revenue (Q: Nov. 2016 )
=(Revenue - Cost of Goods Sold) / Revenue
=4.43 / 5.871
=75.40 %

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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

Cryo-Cell International Inc had a gross margin of 75.40% for the quarter that ended in Nov. 2016 => 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 local exchange's currency.

Cryo-Cell International Inc Annual Data

Nov07Nov08Nov09Nov10Nov11Nov12Nov13Nov14Nov15Nov16
Gross_Profit 10.8711.1713.1313.2613.5213.0813.6714.5015.4617.35

Cryo-Cell International Inc Quarterly Data

Aug14Nov14Feb15May15Aug15Nov15Feb16May16Aug16Nov16
Gross_Profit 3.443.673.573.643.934.333.804.344.784.43
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