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Cantel Medical Corp (NYSE:CMN)
Gross Profit
$213.3 Mil (TTM As of Jul. 2014)

Cantel Medical Corp's gross profit for the three months ended in Jul. 2014 was $57.0 Mil. Cantel Medical Corp's gross profit for the trailing twelve months (TTM) ended in Jul. 2014 was $213.3 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Cantel Medical Corp's gross profit for the three months ended in Jul. 2014 was $57.0 Mil. Cantel Medical Corp's revenue for the three months ended in Jul. 2014 was $131.4 Mil. Therefore, Cantel Medical Corp's Gross Margin for the quarter that ended in Jul. 2014 was 43.42%.

Cantel Medical Corp had a gross margin of 43.42% for the quarter that ended in Jul. 2014 => Durable competitive advantage

During the past 13 years, the highest Gross Margin of Cantel Medical Corp was 43.64%. The lowest was 23.62%. And the median was 37.73%.


Definition

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

Cantel Medical Corp's Gross Profit for the fiscal year that ended in Jul. 2014 is calculated as

Gross Profit (A: Jul. 2014 )=Revenue - Cost of Goods Sold
=488.749 - 275.45
=213.3

Cantel Medical Corp's Gross Profit for the quarter that ended in Jul. 2014 is calculated as

Gross Profit (Q: Jul. 2014 )=Revenue - Cost of Goods Sold
=131.377 - 74.33
=57.0

Cantel Medical Corp Gross Profit for the trailing twelve months (TTM) ended in Jul. 2014 was 51.499 (Oct. 2013 ) + 52.335 (Jan. 2014 ) + 52.418 (Apr. 2014 ) + 57.047 (Jul. 2014 ) = $213.3 Mil.

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

Cantel Medical Corp's Gross Margin for the quarter that ended in Jul. 2014 is calculated as

Gross Margin (Q: Jul. 2014 )=Gross Profit (Q: Jul. 2014 ) / Revenue (Q: Jul. 2014 )
=(Revenue - Cost of Goods Sold) / Revenue
=57.0 / 131.377
=43.42 %

* 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

Cantel Medical Corp had a gross margin of 43.42% for the quarter that ended in Jul. 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.

Cantel Medical Corp Annual Data

Jul05Jul06Jul07Jul08Jul09Jul10Jul11Jul12Jul13Jul14
Gross_Profit 53.969.279.087.699.5111.0122.8164.2183.5213.3

Cantel Medical Corp Quarterly Data

Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14
Gross_Profit 42.642.843.745.245.549.151.552.352.457.0
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