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GuruFocus has detected 4 Warning Signs with Gyrodyne LLC \$GYRO.
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Gyrodyne LLC (NAS:GYRO)
Gross Profit
\$0.80 Mil (TTM As of Sep. 2016)

Gyrodyne LLC's gross profit for the three months ended in Sep. 2016 was \$0.00 Mil. Gyrodyne LLC's gross profit for the trailing twelve months (TTM) ended in Sep. 2016 was \$0.80 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Gyrodyne LLC's gross profit for the three months ended in Sep. 2016 was \$0.00 Mil. Gyrodyne LLC's revenue for the three months ended in Sep. 2016 was \$0.00 Mil. Therefore, Gyrodyne LLC's Gross Margin for the quarter that ended in Sep. 2016 was %.

Gyrodyne LLC had a gross margin of % for the quarter that ended in Sep. 2016 => No sustainable competitive advantage

During the past 13 years, the highest Gross Margin of Gyrodyne LLC was 72.53%. The lowest was 47.13%. And the median was 58.53%.

Warning Sign:

Gyrodyne LLC 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 LLC'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 LLC's Gross Profit for the quarter that ended in Sep. 2016 is calculated as

 Gross Profit (Q: Sep. 2016 ) = Revenue - Cost of Goods Sold = 0 - 0 = 0.00

Gyrodyne LLC Gross Profit for the trailing twelve months (TTM) ended in Sep. 2016 was 0.54 (Mar. 2015 ) + 0.255 (Jun. 2015 ) + 0 (Jun. 2016 ) + 0 (Sep. 2016 ) = \$0.80 Mil.

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

Gyrodyne LLC's Gross Margin for the quarter that ended in Sep. 2016 is calculated as

 Gross Margin (Q: Sep. 2016 ) = Gross Profit (Q: Sep. 2016 ) / Revenue (Q: Sep. 2016 ) = (Revenue - Cost of Goods Sold) / Revenue = 0.00 / 0 = %

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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 LLC had a gross margin of % for the quarter that ended in Sep. 2016 => No sustainable competitive advantage

Related Terms

Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Gyrodyne LLC Annual Data

 Apr05 Apr06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Gross_Profit 1.31 1.18 2.02 1.87 2.88 3.33 3.17 2.68 2.52 2.34

Gyrodyne LLC Quarterly Data

 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Jun16 Sep16 Gross_Profit 0.42 1.38 0.59 0.29 0.27 1.48 0.54 0.26 0.00 0.00
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