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Insperity Inc (NYSE:NSP)
Gross Profit
$436 Mil (TTM As of Jun. 2015)

Insperity Inc's gross profit for the three months ended in Jun. 2015 was $104 Mil. Insperity Inc's gross profit for the trailing twelve months (TTM) ended in Jun. 2015 was $436 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Insperity Inc's gross profit for the three months ended in Jun. 2015 was $104 Mil. Insperity Inc's revenue for the three months ended in Jun. 2015 was $628 Mil. Therefore, Insperity Inc's Gross Margin for the quarter that ended in Jun. 2015 was 16.60%.

Insperity Inc had a gross margin of 16.60% for the quarter that ended in Jun. 2015 => No sustainable competitive advantage

During the past 13 years, the highest Gross Margin of Insperity Inc was 23.15%. The lowest was 3.98%. And the median was 17.76%.


Definition

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

Insperity Inc's Gross Profit for the fiscal year that ended in Mar. 2014 is calculated as

Gross Profit (A: Mar. 2014 )=Revenue - Cost of Goods Sold
=2281.275 - 1889.966
=391

Insperity Inc's Gross Profit for the quarter that ended in Jun. 2015 is calculated as

Gross Profit (Q: Jun. 2015 )=Revenue - Cost of Goods Sold
=627.838 - 523.619
=104

Insperity Inc Gross Profit for the trailing twelve months (TTM) ended in Jun. 2015 was 100.817 (Sep. 2014 ) + 101.359 (Dec. 2014 ) + 129.86 (Mar. 2015 ) + 104.219 (Jun. 2015 ) = $436 Mil.

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

Insperity Inc's Gross Margin for the quarter that ended in Jun. 2015 is calculated as

Gross Margin (Q: Jun. 2015 )=Gross Profit (Q: Jun. 2015 ) / Revenue (Q: Jun. 2015 )
=(Revenue - Cost of Goods Sold) / Revenue
=104 / 627.838
=16.60 %

* 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

Insperity Inc had a gross margin of 16.60% for the quarter that ended in Jun. 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.

Insperity Inc Annual Data

Mar05Mar06Mar07Mar08Mar09Mar10Mar11Mar12Mar13Mar14
Gross_Profit 202250283324341277317364387391

Insperity Inc Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
Gross_Profit 10898979010695101101130104
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