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Jewett-Cameron Trading Co Ltd (NAS:JCTCF)
Gross Profit
$10.00 Mil (TTM As of May. 2016)

Jewett-Cameron Trading Co Ltd's gross profit for the three months ended in May. 2016 was $3.18 Mil. Jewett-Cameron Trading Co Ltd's gross profit for the trailing twelve months (TTM) ended in May. 2016 was $10.00 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 May. 2016 was $3.18 Mil. Jewett-Cameron Trading Co Ltd's revenue for the three months ended in May. 2016 was $14.46 Mil. Therefore, Jewett-Cameron Trading Co Ltd's Gross Margin for the quarter that ended in May. 2016 was 21.97%.

Jewett-Cameron Trading Co Ltd had a gross margin of 21.97% for the quarter that ended in May. 2016 => Competition eroding margins

During the past 13 years, the highest Gross Margin of Jewett-Cameron Trading Co Ltd was 21.82%. The lowest was 14.89%. And the median was 19.56%.


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. 2015 is calculated as

Gross Profit (A: Aug. 2015 )=Revenue - Cost of Goods Sold
=42.238 - 33.821
=8.42

Jewett-Cameron Trading Co Ltd's Gross Profit for the quarter that ended in May. 2016 is calculated as

Gross Profit (Q: May. 2016 )=Revenue - Cost of Goods Sold
=14.459 - 11.282
=3.18

Jewett-Cameron Trading Co Ltd Gross Profit for the trailing twelve months (TTM) ended in May. 2016 was 2.403 (Aug. 2015 ) + 2.38 (Nov. 2015 ) + 2.036 (Feb. 2016 ) + 3.177 (May. 2016 ) = $10.00 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 May. 2016 is calculated as

Gross Margin (Q: May. 2016 )=Gross Profit (Q: May. 2016 ) / Revenue (Q: May. 2016 )
=(Revenue - Cost of Goods Sold) / Revenue
=3.18 / 14.459
=21.97 %

* 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 21.97% for the quarter that ended in May. 2016 => 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

Aug06Aug07Aug08Aug09Aug10Aug11Aug12Aug13Aug14Aug15
Gross_Profit 11.3311.7511.398.909.078.138.649.838.388.42

Jewett-Cameron Trading Co Ltd Quarterly Data

Feb14May14Aug14Nov14Feb15May15Aug15Nov15Feb16May16
Gross_Profit 1.762.951.821.871.902.242.402.382.043.18
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