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Jewett-Cameron Trading Company, Ltd. (NAS:JCTCF)
Gross Profit
$9.01 Mil (TTM As of Feb. 2014)

Jewett-Cameron Trading Company, Ltd.'s gross profit for the three months ended in Feb. 2014 was $1.76 Mil. Jewett-Cameron Trading Company, Ltd.'s gross profit for the trailing twelve months (TTM) ended in Feb. 2014 was $9.01 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Jewett-Cameron Trading Company, Ltd.'s gross profit for the three months ended in Feb. 2014 was $1.76 Mil. Jewett-Cameron Trading Company, Ltd.'s revenue for the three months ended in Feb. 2014 was $9.73 Mil. Therefore, Jewett-Cameron Trading Company, Ltd.'s Gross Margin for the quarter that ended in Feb. 2014 was 18.06%.

Jewett-Cameron Trading Company, Ltd. had a gross margin of 18.06% for the quarter that ended in Feb. 2014 => No sustainable competitive advantage

During the past 13 years, the highest Gross Margin of Jewett-Cameron Trading Company, Ltd. was 21.82%. The lowest was 11.32%. And the median was 16.30%.


Definition

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

Jewett-Cameron Trading Company, Ltd.'s Gross Profit for the fiscal year that ended in Aug. 2013 is calculated as

Gross Profit (A: Aug. 2013 )=Revenue - Cost of Goods Sold
=49.286 - 39.455
=9.83

Jewett-Cameron Trading Company, Ltd.'s Gross Profit for the quarter that ended in Feb. 2014 is calculated as

Gross Profit (Q: Feb. 2014 )=Revenue - Cost of Goods Sold
=9.733 - 7.975
=1.76

Jewett-Cameron Trading Company, Ltd. Gross Profit for the trailing twelve months (TTM) ended in Feb. 2014 was 3.03 (May. 2013 ) + 2.37 (Aug. 2013 ) + 1.85 (Nov. 2013 ) + 1.758 (Feb. 2014 ) = $9.01 Mil.

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

Jewett-Cameron Trading Company, Ltd.'s Gross Margin for the quarter that ended in Feb. 2014 is calculated as

Gross Margin (Q: Feb. 2014 )=Gross Profit (Q: Feb. 2014 ) / Revenue (Q: Feb. 2014 )
=(Revenue - Cost of Goods Sold) / Revenue
=1.76 / 9.733
=18.06 %

* 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 Company, Ltd. had a gross margin of 18.06% for the quarter that ended in Feb. 2014 => No sustainable 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.

Jewett-Cameron Trading Company, Ltd. Annual Data

Aug04Aug05Aug06Aug07Aug08Aug09Aug10Aug11Aug12Aug13
Gross_Profit 8.249.2911.3311.7511.398.909.078.138.649.83

Jewett-Cameron Trading Company, Ltd. Quarterly Data

Nov11Feb12May12Aug12Nov12Feb13May13Aug13Nov13Feb14
Gross_Profit 1.472.092.812.281.992.443.032.371.851.76
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