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Neptune Technologies & Bioressources Inc (NAS:NEPT)
Gross Profit
$-2.12 Mil (TTM As of Nov. 2014)

Neptune Technologies & Bioressources Inc's gross profit for the three months ended in Nov. 2014 was $0.39 Mil. Neptune Technologies & Bioressources Inc's gross profit for the trailing twelve months (TTM) ended in Nov. 2014 was $-2.12 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 Nov. 2014 was $0.39 Mil. Neptune Technologies & Bioressources Inc's revenue for the three months ended in Nov. 2014 was $4.18 Mil. Therefore, Neptune Technologies & Bioressources Inc's Gross Margin for the quarter that ended in Nov. 2014 was 9.27%.

Neptune Technologies & Bioressources Inc had a gross margin of 9.27% for the quarter that ended in Nov. 2014 => No sustainable competitive advantage

During the past 13 years, the highest Gross Margin of Neptune Technologies & Bioressources Inc was 55.86%. The lowest was -62.95%. And the median was 13.32%.


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. 2014 is calculated as

Gross Profit (A: Feb. 2014 )=Revenue - Cost of Goods Sold
=17.643438914 - 15.3610859729
=2.28

Neptune Technologies & Bioressources Inc's Gross Profit for the quarter that ended in Nov. 2014 is calculated as

Gross Profit (Q: Nov. 2014 )=Revenue - Cost of Goods Sold
=4.18101545254 - 3.79337748344
=0.39

Neptune Technologies & Bioressources Inc Gross Profit for the trailing twelve months (TTM) ended in Nov. 2014 was 0.598190045249 (Feb. 2014 ) + 0.48008077841 (May. 2014 ) + -3.58868753432 (Aug. 2014 ) + 0.387637969095 (Nov. 2014 ) = $-2.12 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 Nov. 2014 is calculated as

Gross Margin (Q: Nov. 2014 )=Gross Profit (Q: Nov. 2014 ) / Revenue (Q: Nov. 2014 )
=(Revenue - Cost of Goods Sold) / Revenue
=0.39 / 4.18101545254
=9.27 %

* 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 9.27% for the quarter that ended in Nov. 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.

Neptune Technologies & Bioressources Inc Annual Data

May04May05May06May07May08Feb10Feb11Feb12Feb13Feb14
Gross_Profit -1.030.400.381.671.411.439.4310.0910.212.28

Neptune Technologies & Bioressources Inc Quarterly Data

Aug12Nov12Feb13May13Aug13Nov13Feb14May14Aug14Nov14
Gross_Profit 3.083.350.310.600.620.580.600.48-3.590.39
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