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Jarden Corp (NYSE:JAH)
Gross Profit
$2,186 Mil (TTM As of Mar. 2014)

Jarden Corp's gross profit for the three months ended in Mar. 2014 was $514 Mil. Jarden Corp's gross profit for the trailing twelve months (TTM) ended in Mar. 2014 was $2,186 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Jarden Corp's gross profit for the three months ended in Mar. 2014 was $514 Mil. Jarden Corp's revenue for the three months ended in Mar. 2014 was $1,732 Mil. Therefore, Jarden Corp's Gross Margin for the quarter that ended in Mar. 2014 was 29.70%.

Jarden Corp had a gross margin of 29.70% for the quarter that ended in Mar. 2014 => Competition eroding margins

During the past 13 years, the highest Gross Margin of Jarden Corp was 39.07%. The lowest was 22.89%. And the median was 27.81%.


Definition

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

Jarden Corp'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
=7355.9 - 5241.2
=2,115

Jarden Corp's Gross Profit for the quarter that ended in Mar. 2014 is calculated as

Gross Profit (Q: Mar. 2014 )=Revenue - Cost of Goods Sold
=1731.8 - 1217.4
=514

Jarden Corp Gross Profit for the trailing twelve months (TTM) ended in Mar. 2014 was 513.5 (Jun. 2013 ) + 523.2 (Sep. 2013 ) + 634.5 (Dec. 2013 ) + 514.4 (Mar. 2014 ) = $2,186 Mil.

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

Jarden Corp's Gross Margin for the quarter that ended in Mar. 2014 is calculated as

Gross Margin (Q: Mar. 2014 )=Gross Profit (Q: Mar. 2014 ) / Revenue (Q: Mar. 2014 )
=(Revenue - Cost of Goods Sold) / Revenue
=514 / 1731.8
=29.70 %

* 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

Jarden Corp had a gross margin of 29.70% for the quarter that ended in Mar. 2014 => Competition eroding margins


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.

Jarden Corp Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Gross_Profit 2757879421,1431,5031,4261,6391,8581,9242,115

Jarden Corp Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
Gross_Profit 420496501507444514523635514602
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