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Harte-Hanks Inc (NYSE:HHS)
Gross Profit
\$350.2 Mil (TTM As of Sep. 2016)

Harte-Hanks Inc's gross profit for the three months ended in Sep. 2016 was \$70.2 Mil. Harte-Hanks Inc's gross profit for the trailing twelve months (TTM) ended in Sep. 2016 was \$350.2 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Harte-Hanks Inc's gross profit for the three months ended in Sep. 2016 was \$70.2 Mil. Harte-Hanks Inc's revenue for the three months ended in Sep. 2016 was \$97.4 Mil. Therefore, Harte-Hanks Inc's Gross Margin for the quarter that ended in Sep. 2016 was 72.00%.

Harte-Hanks Inc had a gross margin of 72.00% for the quarter that ended in Sep. 2016 => Durable competitive advantage

During the past 13 years, the highest Gross Margin of Harte-Hanks Inc was 73.97%. The lowest was 26.22%. And the median was 63.44%.

Definition

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

Harte-Hanks 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 = 553.676 - 166.959 = 386.7

Harte-Hanks Inc's Gross Profit for the quarter that ended in Sep. 2016 is calculated as

 Gross Profit (Q: Sep. 2016 ) = Revenue - Cost of Goods Sold = 97.425 - 27.275 = 70.2

Harte-Hanks Inc Gross Profit for the trailing twelve months (TTM) ended in Sep. 2016 was 129.599 (Dec. 2015 ) + 80.588 (Mar. 2016 ) + 69.89 (Jun. 2016 ) + 70.15 (Sep. 2016 ) = \$350.2 Mil.

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

Harte-Hanks Inc'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 = 70.2 / 97.425 = 72.00 %

* 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

Harte-Hanks Inc had a gross margin of 72.00% for the quarter that ended in Sep. 2016 => Durable 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.

Harte-Hanks Inc Annual Data

 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Gross_Profit 310.6 760.1 684.1 547.9 537.3 524.4 485.0 398.0 386.7 352.0

Harte-Hanks Inc Quarterly Data

 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Gross_Profit 98.2 93.8 102.3 85.2 74.1 74.7 129.6 80.6 69.9 70.2
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