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Neptune Technologies & Bioressources Inc (NAS:NEPT)
Gross Profit
$-1.91 Mil (TTM As of Aug. 2014)

Neptune Technologies & Bioressources Inc's gross profit for the three months ended in Aug. 2014 was $-3.56 Mil. Neptune Technologies & Bioressources Inc's gross profit for the trailing twelve months (TTM) ended in Aug. 2014 was $-1.91 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 Aug. 2014 was $-3.56 Mil. Neptune Technologies & Bioressources Inc's revenue for the three months ended in Aug. 2014 was $2.38 Mil. Therefore, Neptune Technologies & Bioressources Inc's Gross Margin for the quarter that ended in Aug. 2014 was -149.49%.

Neptune Technologies & Bioressources Inc had a gross margin of -149.49% for the quarter that ended in Aug. 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
=17.5481548155 - 15.2781278128
=2.27

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

Gross Profit (Q: Aug. 2014 )=Revenue - Cost of Goods Sold
=2.38237965486 - 5.94368755677
=-3.56

Neptune Technologies & Bioressources Inc Gross Profit for the trailing twelve months (TTM) ended in Aug. 2014 was 0.501879699248 (Nov. 2013 ) + 0.662466246625 (Feb. 2014 ) + 0.482917820868 (May. 2014 ) + -3.56130790191 (Aug. 2014 ) = $-1.91 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 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
=-3.56 / 2.38237965486
=-149.49 %

* 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 -149.49% 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.

Neptune Technologies & Bioressources Inc Annual Data

May04May05May06May07May08Feb10Feb11Feb12Feb13Feb14
Gross_Profit -1.050.400.381.721.381.479.5410.1210.072.27

Neptune Technologies & Bioressources Inc Quarterly Data

May12Aug12Nov12Feb13May13Aug13Nov13Feb14May14Aug14
Gross_Profit 3.513.123.370.300.590.630.500.660.48-3.56
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