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Jewett-Cameron Trading Co Ltd (NAS:JCTCF)
Gross Profit
$8.38 Mil (TTM As of Aug. 2014)

Jewett-Cameron Trading Co Ltd's gross profit for the three months ended in Aug. 2014 was $1.82 Mil. Jewett-Cameron Trading Co Ltd's gross profit for the trailing twelve months (TTM) ended in Aug. 2014 was $8.38 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 Aug. 2014 was $1.82 Mil. Jewett-Cameron Trading Co Ltd's revenue for the three months ended in Aug. 2014 was $9.27 Mil. Therefore, Jewett-Cameron Trading Co Ltd's Gross Margin for the quarter that ended in Aug. 2014 was 19.64%.

Jewett-Cameron Trading Co Ltd had a gross margin of 19.64% for the quarter that ended in Aug. 2014 => No sustainable competitive advantage

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 Aug. 2014 is calculated as

Gross Profit (Q: Aug. 2014 )=Revenue - Cost of Goods Sold
=9.265 - 7.445
=1.82

Jewett-Cameron Trading Co Ltd Gross Profit for the trailing twelve months (TTM) ended in Aug. 2014 was 1.85 (Nov. 2013 ) + 1.758 (Feb. 2014 ) + 2.951 (May. 2014 ) + 1.82 (Aug. 2014 ) = $8.38 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 Aug. 2014 is calculated as

Gross Margin (Q: Aug. 2014 )=Gross Profit (Q: Aug. 2014 ) / Revenue (Q: Aug. 2014 )
=(Revenue - Cost of Goods Sold) / Revenue
=1.82 / 9.265
=19.64 %

* 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 19.64% for the quarter that ended in Aug. 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 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

May12Aug12Nov12Feb13May13Aug13Nov13Feb14May14Aug14
Gross_Profit 2.812.281.992.443.032.371.851.762.951.82
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