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Majesco Entertainment Co (NAS:COOL)
Gross Profit
\$1.44 Mil (TTM As of Jul. 2016)

Majesco Entertainment Co's gross profit for the three months ended in Jul. 2016 was \$0.22 Mil. Majesco Entertainment Co's gross profit for the trailing twelve months (TTM) ended in Jul. 2016 was \$1.44 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Majesco Entertainment Co's gross profit for the three months ended in Jul. 2016 was \$0.22 Mil. Majesco Entertainment Co's revenue for the three months ended in Jul. 2016 was \$0.32 Mil. Therefore, Majesco Entertainment Co's Gross Margin for the quarter that ended in Jul. 2016 was 70.79%.

Majesco Entertainment Co had a gross margin of 70.79% for the quarter that ended in Jul. 2016 => Durable competitive advantage

During the past 13 years, the highest Gross Margin of Majesco Entertainment Co was 82.28%. The lowest was 16.60%. And the median was 31.31%.

Definition

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

Majesco Entertainment Co's Gross Profit for the fiscal year that ended in Oct. 2015 is calculated as

 Gross Profit (A: Oct. 2015 ) = Revenue - Cost of Goods Sold = 6.693 - 3.423 = 3.27

Majesco Entertainment Co's Gross Profit for the quarter that ended in Jul. 2016 is calculated as

 Gross Profit (Q: Jul. 2016 ) = Revenue - Cost of Goods Sold = 0.315 - 0.092 = 0.22

Majesco Entertainment Co Gross Profit for the trailing twelve months (TTM) ended in Jul. 2016 was 0.392 (Oct. 2015 ) + 0.533 (Jan. 2016 ) + 0.287 (Apr. 2016 ) + 0.223 (Jul. 2016 ) = \$1.44 Mil.

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

Majesco Entertainment Co's Gross Margin for the quarter that ended in Jul. 2016 is calculated as

 Gross Margin (Q: Jul. 2016 ) = Gross Profit (Q: Jul. 2016 ) / Revenue (Q: Jul. 2016 ) = (Revenue - Cost of Goods Sold) / Revenue = 0.22 / 0.315 = 70.79 %

* 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

Majesco Entertainment Co had a gross margin of 70.79% for the quarter that ended in Jul. 2016 => Durable competitive advantage

Related Terms

Historical Data

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

Majesco Entertainment Co Annual Data

 Oct06 Oct07 Oct08 Oct09 Oct10 Oct11 Oct12 Oct13 Oct14 Oct15 Gross_Profit 19.83 17.29 23.09 22.91 18.39 45.48 43.52 12.17 5.71 3.27

Majesco Entertainment Co Quarterly Data

 Apr14 Jul14 Oct14 Jan15 Apr15 Jul15 Oct15 Jan16 Apr16 Jul16 Gross_Profit 0.06 1.14 1.11 1.36 0.80 0.72 0.39 0.53 0.29 0.22
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