Switch to:
Nutraceutical International Corp (NAS:NUTR)
Gross Profit
\$116.5 Mil (TTM As of Jun. 2016)

Nutraceutical International Corp's gross profit for the three months ended in Jun. 2016 was \$31.4 Mil. Nutraceutical International Corp's gross profit for the trailing twelve months (TTM) ended in Jun. 2016 was \$116.5 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Nutraceutical International Corp's gross profit for the three months ended in Jun. 2016 was \$31.4 Mil. Nutraceutical International Corp's revenue for the three months ended in Jun. 2016 was \$60.8 Mil. Therefore, Nutraceutical International Corp's Gross Margin for the quarter that ended in Jun. 2016 was 51.65%.

Nutraceutical International Corp had a gross margin of 51.65% for the quarter that ended in Jun. 2016 => Durable competitive advantage

During the past 13 years, the highest Gross Margin of Nutraceutical International Corp was 54.40%. The lowest was 49.07%. And the median was 51.38%.

Warning Sign:

Nutraceutical International Corp gross margin has been in long term decline. The average rate of decline per year is -1.1%.

Definition

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

Nutraceutical International Corp's Gross Profit for the fiscal year that ended in Sep. 2015 is calculated as

 Gross Profit (A: Sep. 2015 ) = Revenue - Cost of Goods Sold = 216.479 - 110.255 = 106.2

Nutraceutical International Corp's Gross Profit for the quarter that ended in Jun. 2016 is calculated as

 Gross Profit (Q: Jun. 2016 ) = Revenue - Cost of Goods Sold = 60.836 - 29.416 = 31.4

Nutraceutical International Corp Gross Profit for the trailing twelve months (TTM) ended in Jun. 2016 was 26.687 (Sep. 2015 ) + 28.108 (Dec. 2015 ) + 30.329 (Mar. 2016 ) + 31.42 (Jun. 2016 ) = \$116.5 Mil.

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

Nutraceutical International Corp's Gross Margin for the quarter that ended in Jun. 2016 is calculated as

 Gross Margin (Q: Jun. 2016 ) = Gross Profit (Q: Jun. 2016 ) / Revenue (Q: Jun. 2016 ) = (Revenue - Cost of Goods Sold) / Revenue = 31.4 / 60.836 = 51.65 %

* 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

Nutraceutical International Corp had a gross margin of 51.65% for the quarter that ended in Jun. 2016 => Durable competitive advantage

Related Terms

Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Nutraceutical International Corp Annual Data

 Sep06 Sep07 Sep08 Sep09 Sep10 Sep11 Sep12 Sep13 Sep14 Sep15 Gross_Profit 79.2 84.9 90.8 85.2 93.9 95.2 100.0 102.9 106.3 106.2

Nutraceutical International Corp Quarterly Data

 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Gross_Profit 27.2 27.2 25.9 25.9 27.3 26.4 26.7 28.1 30.3 31.4
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to \$400 per referral. ( Learn More)