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Neptune Technologies & Bioressources Inc. (NAS:NEPT)
Gross Profit
$1.94 Mil (TTM As of Nov. 2013)

Neptune Technologies & Bioressources Inc.'s gross profit for the three months ended in Nov. 2013 was $0.50 Mil. Neptune Technologies & Bioressources Inc.'s gross profit for the trailing twelve months (TTM) ended in Nov. 2013 was $1.94 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 Nov. 2013 was $0.50 Mil. Neptune Technologies & Bioressources Inc.'s revenue for the three months ended in Nov. 2013 was $4.13 Mil. Therefore, Neptune Technologies & Bioressources Inc.'s Gross Margin for the quarter that ended in Nov. 2013 was 12.15%.

Neptune Technologies & Bioressources Inc. had a gross margin of 12.15% for the quarter that ended in Nov. 2013 => 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 13.69%.


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. 2013 is calculated as

Gross Profit (A: Feb. 2013 )=Revenue - Cost of Goods Sold
=25.2578125 - 15.2666015625
=9.99

Neptune Technologies & Bioressources Inc.'s Gross Profit for the quarter that ended in Nov. 2013 is calculated as

Gross Profit (Q: Nov. 2013 )=Revenue - Cost of Goods Sold
=4.13157894737 - 3.62969924812
=0.50

Neptune Technologies & Bioressources Inc. Gross Profit for the trailing twelve months (TTM) ended in Nov. 2013 was 0.22265625 (Feb. 2013 ) + 0.586808923375 (May. 2013 ) + 0.625725338491 (Aug. 2013 ) + 0.501879699248 (Nov. 2013 ) = $1.94 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 Nov. 2013 is calculated as

Gross Margin (Q: Nov. 2013 )=Gross Profit (Q: Nov. 2013 ) / Revenue (Q: Nov. 2013 )
=(Revenue - Cost of Goods Sold) / Revenue
=0.50 / 4.13157894737
=12.15 %

* 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 12.15% for the quarter that ended in Nov. 2013 => 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

May03May04May05May06May07May08Feb10Feb11Feb12Feb13
Gross_Profit 0.00-1.050.400.381.721.381.479.5410.129.99

Neptune Technologies & Bioressources Inc. Quarterly Data

Aug11Nov11Feb12May12Aug12Nov12Feb13May13Aug13Nov13
Gross_Profit 2.222.672.893.513.123.370.220.590.630.50
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