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Johnson Outdoors Inc (NAS:JOUT)
Gross Profit
$161.9 Mil (TTM As of Mar. 2014)

Johnson Outdoors Inc's gross profit for the three months ended in Mar. 2014 was $48.8 Mil. Johnson Outdoors Inc's gross profit for the trailing twelve months (TTM) ended in Mar. 2014 was $161.9 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Johnson Outdoors Inc's gross profit for the three months ended in Mar. 2014 was $48.8 Mil. Johnson Outdoors Inc's revenue for the three months ended in Mar. 2014 was $124.3 Mil. Therefore, Johnson Outdoors Inc's Gross Margin for the quarter that ended in Mar. 2014 was 39.31%.

Johnson Outdoors Inc had a gross margin of 39.31% for the quarter that ended in Mar. 2014 => Competition eroding margins

During the past 13 years, the highest Gross Margin of Johnson Outdoors Inc was 42.63%. The lowest was 37.14%. And the median was 40.24%.


Definition

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

Johnson Outdoors Inc's Gross Profit for the fiscal year that ended in Sep. 2013 is calculated as

Gross Profit (A: Sep. 2013 )=Revenue - Cost of Goods Sold
=426.461 - 255.412
=171.0

Johnson Outdoors Inc's Gross Profit for the quarter that ended in Mar. 2014 is calculated as

Gross Profit (Q: Mar. 2014 )=Revenue - Cost of Goods Sold
=124.273 - 75.427
=48.8

Johnson Outdoors Inc Gross Profit for the trailing twelve months (TTM) ended in Mar. 2014 was 54.337 (Jun. 2013 ) + 28.814 (Sep. 2013 ) + 29.929 (Dec. 2013 ) + 48.846 (Mar. 2014 ) = $161.9 Mil.

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

Johnson Outdoors Inc'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
=48.8 / 124.273
=39.31 %

* 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

Johnson Outdoors Inc had a gross margin of 39.31% 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.

Johnson Outdoors Inc Annual Data

Sep04Sep05Sep06Sep07Sep08Sep09Sep10Sep11Sep12Sep13
Gross_Profit 147.6156.4165.2175.5159.6132.8153.5163.1164.3171.0

Johnson Outdoors Inc Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
Gross_Profit 31.150.554.228.433.854.154.328.829.948.8
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