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Jewett-Cameron Trading Co Ltd (NAS:JCTCF)
Gross Profit
$8.54 Mil (TTM As of Feb. 2015)

Jewett-Cameron Trading Co Ltd's gross profit for the three months ended in Feb. 2015 was $1.90 Mil. Jewett-Cameron Trading Co Ltd's gross profit for the trailing twelve months (TTM) ended in Feb. 2015 was $8.54 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Jewett-Cameron Trading Co Ltd's gross profit for the three months ended in Feb. 2015 was $1.90 Mil. Jewett-Cameron Trading Co Ltd's revenue for the three months ended in Feb. 2015 was $9.48 Mil. Therefore, Jewett-Cameron Trading Co Ltd's Gross Margin for the quarter that ended in Feb. 2015 was 20.06%.

Jewett-Cameron Trading Co Ltd had a gross margin of 20.06% for the quarter that ended in Feb. 2015 => Competition eroding margins

During the past 13 years, the highest Gross Margin of Jewett-Cameron Trading Co Ltd was 21.82%. The lowest was 11.32%. And the median was 16.31%.

Warning Sign:

Jewett-Cameron Trading Co Ltd gross margin has been in long term decline. The average rate of decline per year is -1.8%.


Definition

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

Jewett-Cameron Trading Co Ltd's Gross Profit for the fiscal year that ended in Aug. 2014 is calculated as

Gross Profit (A: Aug. 2014 )=Revenue - Cost of Goods Sold
=42.34 - 33.961
=8.38

Jewett-Cameron Trading Co Ltd's Gross Profit for the quarter that ended in Feb. 2015 is calculated as

Gross Profit (Q: Feb. 2015 )=Revenue - Cost of Goods Sold
=9.483 - 7.581
=1.90

Jewett-Cameron Trading Co Ltd Gross Profit for the trailing twelve months (TTM) ended in Feb. 2015 was 2.951 (May. 2014 ) + 1.82 (Aug. 2014 ) + 1.87 (Nov. 2014 ) + 1.902 (Feb. 2015 ) = $8.54 Mil.

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

Jewett-Cameron Trading Co Ltd's Gross Margin for the quarter that ended in Feb. 2015 is calculated as

Gross Margin (Q: Feb. 2015 )=Gross Profit (Q: Feb. 2015 ) / Revenue (Q: Feb. 2015 )
=(Revenue - Cost of Goods Sold) / Revenue
=1.90 / 9.483
=20.06 %

* 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

Jewett-Cameron Trading Co Ltd had a gross margin of 20.06% for the quarter that ended in Feb. 2015 => 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.

Jewett-Cameron Trading Co Ltd Annual Data

Aug05Aug06Aug07Aug08Aug09Aug10Aug11Aug12Aug13Aug14
Gross_Profit 9.2911.3311.7511.398.909.078.138.649.838.38

Jewett-Cameron Trading Co Ltd Quarterly Data

Nov12Feb13May13Aug13Nov13Feb14May14Aug14Nov14Feb15
Gross_Profit 1.992.443.032.371.851.762.951.821.871.90
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