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Neptune Technologies & Bioressources Inc (NAS:NEPT)
Gross Profit
$-7.94 Mil (TTM As of May. 2015)

Neptune Technologies & Bioressources Inc's gross profit for the three months ended in May. 2015 was $-0.69 Mil. Neptune Technologies & Bioressources Inc's gross profit for the trailing twelve months (TTM) ended in May. 2015 was $-7.94 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 May. 2015 was $-0.69 Mil. Neptune Technologies & Bioressources Inc's revenue for the three months ended in May. 2015 was $2.22 Mil. Therefore, Neptune Technologies & Bioressources Inc's Gross Margin for the quarter that ended in May. 2015 was -31.13%.

Neptune Technologies & Bioressources Inc had a gross margin of -31.13% for the quarter that ended in May. 2015 => No sustainable competitive advantage

During the past 13 years, the highest Gross Margin of Neptune Technologies & Bioressources Inc was 52.64%. The lowest was -62.95%. And the median was 12.94%.


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. 2015 is calculated as

Gross Profit (A: Feb. 2015 )=Revenue - Cost of Goods Sold
=12.0569645572 - 18.4718777502
=-6.41

Neptune Technologies & Bioressources Inc's Gross Profit for the quarter that ended in May. 2015 is calculated as

Gross Profit (Q: May. 2015 )=Revenue - Cost of Goods Sold
=2.22158344284 - 2.91310775296
=-0.69

Neptune Technologies & Bioressources Inc Gross Profit for the trailing twelve months (TTM) ended in May. 2015 was -3.58868753432 (Aug. 2014 ) + 0.387637969095 (Nov. 2014 ) + -4.0467237379 (Feb. 2015 ) + -0.691524310118 (May. 2015 ) = $-7.94 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 May. 2015 is calculated as

Gross Margin (Q: May. 2015 )=Gross Profit (Q: May. 2015 ) / Revenue (Q: May. 2015 )
=(Revenue - Cost of Goods Sold) / Revenue
=-0.69 / 2.22158344284
=-31.13 %

* 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 -31.13% for the quarter that ended in May. 2015 => 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

May05May06May07May08Feb10Feb11Feb12Feb13Feb14Feb15
Gross_Profit 0.400.381.671.411.432.8210.1010.132.28-6.41

Neptune Technologies & Bioressources Inc Quarterly Data

Feb13May13Aug13Nov13Feb14May14Aug14Nov14Feb15May15
Gross_Profit 0.140.590.620.510.670.48-3.590.39-4.05-0.69
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