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Harte-Hanks Inc (NYSE:HHS)
Gross Profit
$352.0 Mil (TTM As of Dec. 2015)

Harte-Hanks Inc's gross profit for the three months ended in Dec. 2015 was $92.4 Mil. Harte-Hanks Inc's gross profit for the trailing twelve months (TTM) ended in Dec. 2015 was $352.0 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. 2015 was $92.4 Mil. Harte-Hanks Inc's revenue for the three months ended in Dec. 2015 was $129.8 Mil. Therefore, Harte-Hanks Inc's Gross Margin for the quarter that ended in Dec. 2015 was 71.22%.

Harte-Hanks Inc had a gross margin of 71.22% for the quarter that ended in Dec. 2015 => 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 67.08%.


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. 2015 is calculated as

Gross Profit (A: Dec. 2015 )=Revenue - Cost of Goods Sold
=495.301 - 143.324
=352.0

Harte-Hanks Inc's Gross Profit for the quarter that ended in Dec. 2015 is calculated as

Gross Profit (Q: Dec. 2015 )=Revenue - Cost of Goods Sold
=129.815 - 37.366
=92.4

Harte-Hanks Inc Gross Profit for the trailing twelve months (TTM) ended in Dec. 2015 was 85.214 (Mar. 2015 ) + 86.939 (Jun. 2015 ) + 87.376 (Sep. 2015 ) + 92.449 (Dec. 2015 ) = $352.0 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. 2015 is calculated as

Gross Margin (Q: Dec. 2015 )=Gross Profit (Q: Dec. 2015 ) / Revenue (Q: Dec. 2015 )
=(Revenue - Cost of Goods Sold) / Revenue
=92.4 / 129.815
=71.22 %

* 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 71.22% for the quarter that ended in Dec. 2015 => 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

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
Gross_Profit 310.6760.1684.1547.9521.5422.6409.0398.0386.7352.0

Harte-Hanks Inc Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
Gross_Profit 109.592.598.293.8102.385.286.987.492.480.6
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