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Globecomm Systems, Inc. (NAS:GCOM)
Gross Profit
\$74.5 Mil (TTM As of Sep. 2013)

Globecomm Systems, Inc.'s gross profit for the three months ended in Sep. 2013 was \$15.0 Mil. Globecomm Systems, Inc.'s gross profit for the trailing twelve months (TTM) ended in Sep. 2013 was \$74.5 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Globecomm Systems, Inc.'s gross profit for the three months ended in Sep. 2013 was \$15.0 Mil. Globecomm Systems, Inc.'s revenue for the three months ended in Sep. 2013 was \$57.3 Mil. Therefore, Globecomm Systems, Inc.'s Gross Margin for the quarter that ended in Sep. 2013 was 26.28%.

Globecomm Systems, Inc. had a gross margin of 26.28% for the quarter that ended in Sep. 2013 => Competition eroding margins

Definition

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

Globecomm Systems, Inc.'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 = 319.614 - 243.09 = 76.5

Globecomm Systems, Inc.'s Gross Profit for the quarter that ended in Sep. 2013 is calculated as

 Gross Profit (Q: Sep. 2013 ) = Revenue - Cost of Goods Sold = 57.262 - 42.216 = 15.0

Globecomm Systems, Inc. Gross Profit for the trailing twelve months (TTM) ended in Sep. 2013 was 19.253 (Dec. 2012 ) + 20.221 (Mar. 2013 ) + 19.963 (Jun. 2013 ) + 15.046 (Sep. 2013 ) = \$74.5 Mil.

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

Globecomm Systems, Inc.'s Gross Margin for the quarter that ended in Sep. 2013 is calculated as

 Gross Margin (Q: Sep. 2013 ) = Gross Profit (Q: Sep. 2013 ) / Revenue (Q: Sep. 2013 ) = (Revenue - Cost of Goods Sold) / Revenue = 15.0 / 57.262 = 26.28 %

* 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

Globecomm Systems, Inc. had a gross margin of 26.28% for the quarter that ended in Sep. 2013 => Competition eroding margins

Related Terms

Historical Data

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

Globecomm Systems, Inc. Annual Data

 Jun04 Jun05 Jun06 Jun07 Jun08 Jun09 Jun10 Jun11 Jun12 Jun13 Gross_Profit 11.0 18.7 21.0 29.5 42.1 35.3 52.4 72.4 86.8 76.5

Globecomm Systems, Inc. Quarterly Data

 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Gross_Profit 22.4 18.9 23.0 23.7 21.2 17.1 19.3 20.2 20.0 15.0
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