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Harte-Hanks Inc (NYSE:HHS)
Gross Profit
$386.7 Mil (TTM As of Dec. 2014)

Harte-Hanks Inc's gross profit for the three months ended in Dec. 2014 was $102.3 Mil. Harte-Hanks Inc's gross profit for the trailing twelve months (TTM) ended in Dec. 2014 was $386.7 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Harte-Hanks Inc's gross profit for the three months ended in Dec. 2014 was $102.3 Mil. Harte-Hanks Inc's revenue for the three months ended in Dec. 2014 was $146.5 Mil. Therefore, Harte-Hanks Inc's Gross Margin for the quarter that ended in Dec. 2014 was 69.85%.

Harte-Hanks Inc had a gross margin of 69.85% for the quarter that ended in Dec. 2014 => Durable competitive advantage

During the past 13 years, the highest Gross Margin of Harte-Hanks Inc was 71.12%. The lowest was 26.22%. And the median was 63.04%.


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 Dec. 2014 is calculated as

Gross Profit (Q: Dec. 2014 )=Revenue - Cost of Goods Sold
=146.518 - 44.175
=102.3

Harte-Hanks Inc Gross Profit for the trailing twelve months (TTM) ended in Dec. 2014 was 92.451 (Mar. 2014 ) + 98.152 (Jun. 2014 ) + 93.771 (Sep. 2014 ) + 102.343 (Dec. 2014 ) = $386.7 Mil.

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

Harte-Hanks 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
=102.3 / 146.518
=69.85 %

* 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

Harte-Hanks Inc had a gross margin of 69.85% 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.

Harte-Hanks Inc Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
Gross_Profit 309.4310.6760.1684.1547.9521.5510.9409.0398.0386.7

Harte-Hanks Inc Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
Gross_Profit 98.5110.093.499.595.7109.592.598.293.8102.3
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