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Hi-Tech Pharmacal Co., Inc. (NAS:HITK)
Gross Profit
$116.0 Mil (TTM As of Jan. 2014)

Hi-Tech Pharmacal Co., Inc.'s gross profit for the three months ended in Jan. 2014 was $31.9 Mil. Hi-Tech Pharmacal Co., Inc.'s gross profit for the trailing twelve months (TTM) ended in Jan. 2014 was $116.0 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Hi-Tech Pharmacal Co., Inc.'s gross profit for the three months ended in Jan. 2014 was $31.9 Mil. Hi-Tech Pharmacal Co., Inc.'s revenue for the three months ended in Jan. 2014 was $59.9 Mil. Therefore, Hi-Tech Pharmacal Co., Inc.'s Gross Margin for the quarter that ended in Jan. 2014 was 53.32%.

Hi-Tech Pharmacal Co., Inc. had a gross margin of 53.32% for the quarter that ended in Jan. 2014 => Durable competitive advantage

During the past 13 years, the highest Gross Margin of Hi-Tech Pharmacal Co., Inc. was 56.98%. The lowest was 34.69%. And the median was 48.39%.


Definition

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

Hi-Tech Pharmacal Co., Inc.'s Gross Profit for the fiscal year that ended in Apr. 2013 is calculated as

Gross Profit (A: Apr. 2013 )=Revenue - Cost of Goods Sold
=232.384 - 117.304
=115.1

Hi-Tech Pharmacal Co., Inc.'s Gross Profit for the quarter that ended in Jan. 2014 is calculated as

Gross Profit (Q: Jan. 2014 )=Revenue - Cost of Goods Sold
=59.902 - 27.962
=31.9

Hi-Tech Pharmacal Co., Inc. Gross Profit for the trailing twelve months (TTM) ended in Jan. 2014 was 27.291 (Apr. 2013 ) + 25.425 (Jul. 2013 ) + 31.31 (Oct. 2013 ) + 31.94 (Jan. 2014 ) = $116.0 Mil.

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

Hi-Tech Pharmacal Co., Inc.'s Gross Margin for the quarter that ended in Jan. 2014 is calculated as

Gross Margin (Q: Jan. 2014 )=Gross Profit (Q: Jan. 2014 ) / Revenue (Q: Jan. 2014 )
=(Revenue - Cost of Goods Sold) / Revenue
=31.9 / 59.902
=53.32 %

* 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

Hi-Tech Pharmacal Co., Inc. had a gross margin of 53.32% for the quarter that ended in Jan. 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.

Hi-Tech Pharmacal Co., Inc. Annual Data

Apr04Apr05Apr06Apr07Apr08Apr09Apr10Apr11Apr12Apr13
Gross_Profit 30.236.342.223.221.551.790.8107.6129.2115.1

Hi-Tech Pharmacal Co., Inc. Quarterly Data

Oct11Jan12Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14
Gross_Profit 33.430.731.825.329.632.927.325.431.331.9
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