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Crown Crafts, Inc. (NAS:CRWS)
Gross Profit
$22.32 Mil (TTM As of Dec. 2013)

Crown Crafts, Inc.'s gross profit for the three months ended in Dec. 2013 was $5.95 Mil. Crown Crafts, Inc.'s gross profit for the trailing twelve months (TTM) ended in Dec. 2013 was $22.32 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Crown Crafts, Inc.'s gross profit for the three months ended in Dec. 2013 was $5.95 Mil. Crown Crafts, Inc.'s revenue for the three months ended in Dec. 2013 was $20.62 Mil. Therefore, Crown Crafts, Inc.'s Gross Margin for the quarter that ended in Dec. 2013 was 28.88%.

Crown Crafts, Inc. had a gross margin of 28.88% for the quarter that ended in Dec. 2013 => Competition eroding margins

During the past 13 years, the highest Gross Margin of Crown Crafts, Inc. was 25.21%. The lowest was 14.16%. And the median was 22.33%.


Definition

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

Crown Crafts, Inc.'s Gross Profit for the fiscal year that ended in Mar. 2013 is calculated as

Gross Profit (A: Mar. 2013 )=Revenue - Cost of Goods Sold
=78.416 - 58.649
=19.77

Crown Crafts, Inc.'s Gross Profit for the quarter that ended in Dec. 2013 is calculated as

Gross Profit (Q: Dec. 2013 )=Revenue - Cost of Goods Sold
=20.619 - 14.665
=5.95

Crown Crafts, Inc. Gross Profit for the trailing twelve months (TTM) ended in Dec. 2013 was 6.146 (Mar. 2013 ) + 4.494 (Jun. 2013 ) + 5.727 (Sep. 2013 ) + 5.954 (Dec. 2013 ) = $22.32 Mil.

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

Crown Crafts, Inc.'s Gross Margin for the quarter that ended in Dec. 2013 is calculated as

Gross Margin (Q: Dec. 2013 )=Gross Profit (Q: Dec. 2013 ) / Revenue (Q: Dec. 2013 )
=(Revenue - Cost of Goods Sold) / Revenue
=5.95 / 20.619
=28.88 %

* 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

Crown Crafts, Inc. had a gross margin of 28.88% for the quarter that ended in Dec. 2013 => 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.

Crown Crafts, Inc. Annual Data

Mar04Mar05Mar06Mar07Mar08Mar09Mar10Mar11Mar12Mar13
Gross_Profit 19.5917.0317.0918.1018.6118.9120.2320.0919.5419.77

Crown Crafts, Inc. Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
Gross_Profit 4.745.245.784.433.915.286.154.495.735.95
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