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Neptune Technologies & Bioressources Inc (NAS:NEPT)
Gross Profit
$3.30 Mil (TTM As of Feb. 2016)

Neptune Technologies & Bioressources Inc's gross profit for the three months ended in Feb. 2016 was $2.22 Mil. Neptune Technologies & Bioressources Inc's gross profit for the trailing twelve months (TTM) ended in Feb. 2016 was $3.30 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Neptune Technologies & Bioressources Inc's gross profit for the three months ended in Feb. 2016 was $2.22 Mil. Neptune Technologies & Bioressources Inc's revenue for the three months ended in Feb. 2016 was $7.27 Mil. Therefore, Neptune Technologies & Bioressources Inc's Gross Margin for the quarter that ended in Feb. 2016 was 30.55%.

Neptune Technologies & Bioressources Inc had a gross margin of 30.55% for the quarter that ended in Feb. 2016 => Competition eroding margins

During the past 13 years, the highest Gross Margin of Neptune Technologies & Bioressources Inc was 52.64%. The lowest was -53.21%. And the median was 15.19%.


Definition

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

Neptune Technologies & Bioressources Inc's Gross Profit for the fiscal year that ended in Feb. 2016 is calculated as

Gross Profit (A: Feb. 2016 )=Revenue - Cost of Goods Sold
=16.4035659926 - 13.0934261071
=3.31

Neptune Technologies & Bioressources Inc's Gross Profit for the quarter that ended in Feb. 2016 is calculated as

Gross Profit (Q: Feb. 2016 )=Revenue - Cost of Goods Sold
=7.26969631079 - 5.04892367906
=2.22

Neptune Technologies & Bioressources Inc Gross Profit for the trailing twelve months (TTM) ended in Feb. 2016 was -0.691524310118 (May. 2015 ) + 0.528637712026 (Aug. 2015 ) + 1.2433165148 (Nov. 2015 ) + 2.22077263173 (Feb. 2016 ) = $3.30 Mil.

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

Neptune Technologies & Bioressources Inc's Gross Margin for the quarter that ended in Feb. 2016 is calculated as

Gross Margin (Q: Feb. 2016 )=Gross Profit (Q: Feb. 2016 ) / Revenue (Q: Feb. 2016 )
=(Revenue - Cost of Goods Sold) / Revenue
=2.22 / 7.26969631079
=30.55 %

* 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

Neptune Technologies & Bioressources Inc had a gross margin of 30.55% for the quarter that ended in Feb. 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.

Neptune Technologies & Bioressources Inc Annual Data

May06May07May08Feb10Feb11Feb12Feb13Feb14Feb15Feb16
Gross_Profit 0.381.671.411.432.8210.1010.132.28-6.413.31

Neptune Technologies & Bioressources Inc Quarterly Data

Nov13Feb14May14Aug14Nov14Feb15May15Aug15Nov15Feb16
Gross_Profit 0.580.600.48-3.590.39-4.05-0.690.531.242.22
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