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Myriad Genetics Inc (NAS:MYGN)
Gross Profit
$626.0 Mil (TTM As of Sep. 2014)

Myriad Genetics Inc's gross profit for the three months ended in Sep. 2014 was $134.0 Mil. Myriad Genetics Inc's gross profit for the trailing twelve months (TTM) ended in Sep. 2014 was $626.0 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Myriad Genetics Inc's gross profit for the three months ended in Sep. 2014 was $134.0 Mil. Myriad Genetics Inc's revenue for the three months ended in Sep. 2014 was $168.8 Mil. Therefore, Myriad Genetics Inc's Gross Margin for the quarter that ended in Sep. 2014 was 79.35%.

Myriad Genetics Inc had a gross margin of 79.35% for the quarter that ended in Sep. 2014 => Durable competitive advantage

During the past 13 years, the highest Gross Margin of Myriad Genetics Inc was 124.24%. The lowest was 75.34%. And the median was 86.96%.


Definition

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

Myriad Genetics Inc's Gross Profit for the fiscal year that ended in Jun. 2014 is calculated as

Gross Profit (A: Jun. 2014 )=Revenue - Cost of Goods Sold
=778.216 - 109.201
=669.0

Myriad Genetics Inc's Gross Profit for the quarter that ended in Sep. 2014 is calculated as

Gross Profit (Q: Sep. 2014 )=Revenue - Cost of Goods Sold
=168.837 - 34.865
=134.0

Myriad Genetics Inc Gross Profit for the trailing twelve months (TTM) ended in Sep. 2014 was 177.929 (Dec. 2013 ) + 156.315 (Mar. 2014 ) + 157.786 (Jun. 2014 ) + 133.972 (Sep. 2014 ) = $626.0 Mil.

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

Myriad Genetics Inc's Gross Margin for the quarter that ended in Sep. 2014 is calculated as

Gross Margin (Q: Sep. 2014 )=Gross Profit (Q: Sep. 2014 ) / Revenue (Q: Sep. 2014 )
=(Revenue - Cost of Goods Sold) / Revenue
=134.0 / 168.837
=79.35 %

* 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

Myriad Genetics Inc had a gross margin of 79.35% for the quarter that ended in Sep. 2014 => Durable 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.

Myriad Genetics Inc Annual Data

Jun05Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14
Gross_Profit 62.186.6126.3301.3283.3318.4355.4431.3533.5669.0

Myriad Genetics Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
Gross_Profit 116.0116.1129.3136.1152.0177.0177.9156.3157.8134.0
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