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Nu Skin Enterprises Inc (NYSE:NUS)
Gross Profit
$1,921 Mil (TTM As of Jun. 2015)

Nu Skin Enterprises Inc's gross profit for the three months ended in Jun. 2015 was $450 Mil. Nu Skin Enterprises Inc's gross profit for the trailing twelve months (TTM) ended in Jun. 2015 was $1,921 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Nu Skin Enterprises Inc's gross profit for the three months ended in Jun. 2015 was $450 Mil. Nu Skin Enterprises Inc's revenue for the three months ended in Jun. 2015 was $560 Mil. Therefore, Nu Skin Enterprises Inc's Gross Margin for the quarter that ended in Jun. 2015 was 80.32%.

Nu Skin Enterprises Inc had a gross margin of 80.32% for the quarter that ended in Jun. 2015 => Durable competitive advantage

During the past 13 years, the highest Gross Margin of Nu Skin Enterprises Inc was 87.30%. The lowest was 73.62%. And the median was 82.01%.


Definition

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

Nu Skin Enterprises Inc's Gross Profit for the fiscal year that ended in Dec. 2014 is calculated as

Gross Profit (A: Dec. 2014 )=Revenue - Cost of Goods Sold
=2569.495 - 478.434
=2,091

Nu Skin Enterprises 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
=560.209 - 110.263
=450

Nu Skin Enterprises Inc Gross Profit for the trailing twelve months (TTM) ended in Jun. 2015 was 529.525 (Sep. 2014 ) + 503.102 (Dec. 2014 ) + 438.277 (Mar. 2015 ) + 449.946 (Jun. 2015 ) = $1,921 Mil.

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

Nu Skin Enterprises 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
=450 / 560.209
=80.32 %

* 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

Nu Skin Enterprises Inc had a gross margin of 80.32% for the quarter that ended in Jun. 2015 => Durable 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.

Nu Skin Enterprises Inc Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
Gross_Profit 9759209481,0191,0871,2651,4211,8172,6712,091

Nu Skin Enterprises Inc Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
Gross_Profit 460572788851564494530503438450
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