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Gyrodyne Co of America Inc (NAS:GYRO)
Gross Profit
$2.62 Mil (TTM As of Dec. 2014)

Gyrodyne Co of America Inc's gross profit for the three months ended in Dec. 2014 was $1.48 Mil. Gyrodyne Co of America Inc's gross profit for the trailing twelve months (TTM) ended in Dec. 2014 was $2.62 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Gyrodyne Co of America Inc's gross profit for the three months ended in Dec. 2014 was $1.48 Mil. Gyrodyne Co of America Inc's revenue for the three months ended in Dec. 2014 was $2.95 Mil. Therefore, Gyrodyne Co of America Inc's Gross Margin for the quarter that ended in Dec. 2014 was 50.25%.

Gyrodyne Co of America Inc had a gross margin of 50.25% for the quarter that ended in Dec. 2014 => Durable competitive advantage

During the past 13 years, the highest Gross Margin of Gyrodyne Co of America Inc was 80.03%. The lowest was 33.33%. And the median was 60.02%.

Warning Sign:

Gyrodyne Co of America Inc gross margin has been in long term decline. The average rate of decline per year is -4.9%.


Definition

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

Gyrodyne Co of America Inc's Gross Profit for the fiscal year that ended in Dec. 2014 is calculated as

Gross Profit (A: Dec. 2014 )=Revenue - Cost of Goods Sold
=4.949 - 2.606
=2.34

Gyrodyne Co of America Inc's Gross Profit for the quarter that ended in Dec. 2014 is calculated as

Gross Profit (Q: Dec. 2014 )=Revenue - Cost of Goods Sold
=2.947 - 1.466
=1.48

Gyrodyne Co of America Inc Gross Profit for the trailing twelve months (TTM) ended in Dec. 2014 was 0.588 (Mar. 2014 ) + 0.289 (Jun. 2014 ) + 0.265 (Sep. 2014 ) + 1.481 (Dec. 2014 ) = $2.62 Mil.

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

Gyrodyne Co of America Inc's Gross Margin for the quarter that ended in Dec. 2014 is calculated as

Gross Margin (Q: Dec. 2014 )=Gross Profit (Q: Dec. 2014 ) / Revenue (Q: Dec. 2014 )
=(Revenue - Cost of Goods Sold) / Revenue
=1.48 / 2.947
=50.25 %

* 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

Gyrodyne Co of America Inc had a gross margin of 50.25% for the quarter that ended in Dec. 2014 => 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.

Gyrodyne Co of America Inc Annual Data

Apr05Apr06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
Gross_Profit 1.311.182.021.872.883.333.172.682.522.34

Gyrodyne Co of America Inc Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
Gross_Profit 0.610.640.630.350.421.380.590.290.271.48
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