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ECB Bancorp Inc (AMEX:ECBE)
Gross Profit
$0.00 Mil (TTM As of Sep. 2012)

ECB Bancorp Inc's gross profit for the three months ended in Sep. 2012 was $0.00 Mil. ECB Bancorp Inc's gross profit for the trailing twelve months (TTM) ended in Sep. 2012 was $0.00 Mil.

Gross Margin is calculated as gross profit divided by its revenue. ECB Bancorp Inc's gross profit for the three months ended in Sep. 2012 was $0.00 Mil. ECB Bancorp Inc's revenue for the three months ended in Sep. 2012 was $12.33 Mil. Therefore, ECB Bancorp Inc's Gross Margin for the quarter that ended in Sep. 2012 was 100.00%.

ECB Bancorp Inc had a gross margin of 100.00% for the quarter that ended in Sep. 2012 => Durable competitive advantage


Definition

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

ECB Bancorp Inc's Gross Profit for the fiscal year that ended in Dec. 2011 is calculated as

Gross Profit (A: Dec. 2011 )=Revenue - Cost of Goods Sold
=35.771 - 0
=35.77

ECB Bancorp Inc's Gross Profit for the quarter that ended in Sep. 2012 is calculated as

Gross Profit (Q: Sep. 2012 )=Revenue - Cost of Goods Sold
=12.329 - 0
=12.33

ECB Bancorp Inc Gross Profit for the trailing twelve months (TTM) ended in Sep. 2012 was 0 (Dec. 2011 ) + 0 (Mar. 2012 ) + 0 (Jun. 2012 ) + 0 (Sep. 2012 ) = $0.00 Mil.

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

ECB Bancorp Inc's Gross Margin for the quarter that ended in Sep. 2012 is calculated as

Gross Margin (Q: Sep. 2012 )=Gross Profit (Q: Sep. 2012 ) / Revenue (Q: Sep. 2012 )
=(Revenue - Cost of Goods Sold) / Revenue
=12.33 / 12.329
=100.00 %

* 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

ECB Bancorp Inc had a gross margin of 100.00% for the quarter that ended in Sep. 2012 => 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.

ECB Bancorp Inc Annual Data

Dec02Dec03Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11
Gross_Profit 0.000.000.000.000.000.000.000.000.000.00

ECB Bancorp Inc Quarterly Data

Jun10Sep10Dec10Mar11Jun11Sep11Dec11Mar12Jun12Sep12
Gross_Profit 0.000.000.000.000.000.000.000.000.000.00
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