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Harte-Hanks Inc (NYSE:HHS)
Gross Profit
$395.7 Mil (TTM As of Jun. 2014)

Harte-Hanks Inc's gross profit for the three months ended in Jun. 2014 was $98.2 Mil. Harte-Hanks Inc's gross profit for the trailing twelve months (TTM) ended in Jun. 2014 was $395.7 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Harte-Hanks Inc's gross profit for the three months ended in Jun. 2014 was $98.2 Mil. Harte-Hanks Inc's revenue for the three months ended in Jun. 2014 was $140.3 Mil. Therefore, Harte-Hanks Inc's Gross Margin for the quarter that ended in Jun. 2014 was 69.95%.

Harte-Hanks Inc had a gross margin of 69.95% for the quarter that ended in Jun. 2014 => Durable competitive advantage

During the past 13 years, the highest Gross Margin of Harte-Hanks Inc was 71.12%. The lowest was 25.06%. And the median was 62.62%.


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. 2013 is calculated as

Gross Profit (A: Dec. 2013 )=Revenue - Cost of Goods Sold
=559.609 - 161.6
=398.0

Harte-Hanks Inc's Gross Profit for the quarter that ended in Jun. 2014 is calculated as

Gross Profit (Q: Jun. 2014 )=Revenue - Cost of Goods Sold
=140.31 - 42.158
=98.2

Harte-Hanks Inc Gross Profit for the trailing twelve months (TTM) ended in Jun. 2014 was 95.658 (Sep. 2013 ) + 109.45 (Dec. 2013 ) + 92.451 (Mar. 2014 ) + 98.152 (Jun. 2014 ) = $395.7 Mil.

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

Harte-Hanks Inc's Gross Margin for the quarter that ended in Jun. 2014 is calculated as

Gross Margin (Q: Jun. 2014 )=Gross Profit (Q: Jun. 2014 ) / Revenue (Q: Jun. 2014 )
=(Revenue - Cost of Goods Sold) / Revenue
=98.2 / 140.31
=69.95 %

* 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 69.95% for the quarter that ended in Jun. 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

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Gross_Profit 669.2309.4310.6291.4684.1547.9537.3524.4485.0398.0

Harte-Hanks Inc Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
Gross_Profit 121.0123.7119.6120.793.499.595.7109.592.598.2
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