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Digital Cinema Destinations Corp (NAS:DCIN)
Gross Profit
\$20.92 Mil (TTM As of Mar. 2014)

Digital Cinema Destinations Corp's gross profit for the three months ended in Mar. 2014 was \$6.40 Mil. Digital Cinema Destinations Corp's gross profit for the trailing twelve months (TTM) ended in Mar. 2014 was \$20.92 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Digital Cinema Destinations Corp's gross profit for the three months ended in Mar. 2014 was \$6.40 Mil. Digital Cinema Destinations Corp's revenue for the three months ended in Mar. 2014 was \$10.05 Mil. Therefore, Digital Cinema Destinations Corp's Gross Margin for the quarter that ended in Mar. 2014 was 63.64%.

Digital Cinema Destinations Corp had a gross margin of 63.64% for the quarter that ended in Mar. 2014 => Durable competitive advantage

Definition

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

Digital Cinema Destinations Corp's Gross Profit for the fiscal year that ended in Jun. 2013 is calculated as

 Gross Profit (A: Jun. 2013 ) = Revenue - Cost of Goods Sold = 31.184 - 17.982 = 13.20

Digital Cinema Destinations Corp's Gross Profit for the quarter that ended in Mar. 2014 is calculated as

 Gross Profit (Q: Mar. 2014 ) = Revenue - Cost of Goods Sold = 10.054 - 3.656 = 6.40

Digital Cinema Destinations Corp Gross Profit for the trailing twelve months (TTM) ended in Mar. 2014 was 0.752 (Jun. 2013 ) + 7.089 (Sep. 2013 ) + 6.679 (Dec. 2013 ) + 6.398 (Mar. 2014 ) = \$20.92 Mil.

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

Digital Cinema Destinations Corp's Gross Margin for the quarter that ended in Mar. 2014 is calculated as

 Gross Margin (Q: Mar. 2014 ) = Gross Profit (Q: Mar. 2014 ) / Revenue (Q: Mar. 2014 ) = (Revenue - Cost of Goods Sold) / Revenue = 6.40 / 10.054 = 63.64 %

* 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

Digital Cinema Destinations Corp had a gross margin of 63.64% for the quarter that ended in Mar. 2014 => Durable competitive advantage

Related Terms

Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Digital Cinema Destinations Corp Annual Data

 Jun12 Jun13 Gross_Profit 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2.84 13.20

Digital Cinema Destinations Corp Quarterly Data

 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Gross_Profit 0.45 0.43 1.50 2.77 4.15 5.53 0.75 7.09 6.68 6.40
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