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Oil-Dri Corp of America (NYSE:ODC)
Gross Profit
$70.9 Mil (TTM As of Jan. 2016)

Oil-Dri Corp of America's gross profit for the three months ended in Jan. 2016 was $19.1 Mil. Oil-Dri Corp of America's gross profit for the trailing twelve months (TTM) ended in Jan. 2016 was $70.9 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Oil-Dri Corp of America's gross profit for the three months ended in Jan. 2016 was $19.1 Mil. Oil-Dri Corp of America's revenue for the three months ended in Jan. 2016 was $65.4 Mil. Therefore, Oil-Dri Corp of America's Gross Margin for the quarter that ended in Jan. 2016 was 29.16%.

Oil-Dri Corp of America had a gross margin of 29.16% for the quarter that ended in Jan. 2016 => Competition eroding margins

During the past 13 years, the highest Gross Margin of Oil-Dri Corp of America was 26.54%. The lowest was 18.55%. And the median was 22.24%.


Definition

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

Oil-Dri Corp of America's Gross Profit for the fiscal year that ended in Jul. 2015 is calculated as

Gross Profit (A: Jul. 2015 )=Revenue - Cost of Goods Sold
=261.402 - 201.245
=60.2

Oil-Dri Corp of America's Gross Profit for the quarter that ended in Jan. 2016 is calculated as

Gross Profit (Q: Jan. 2016 )=Revenue - Cost of Goods Sold
=65.367 - 46.305
=19.1

Oil-Dri Corp of America Gross Profit for the trailing twelve months (TTM) ended in Jan. 2016 was 14.433 (Apr. 2015 ) + 16.722 (Jul. 2015 ) + 20.653 (Oct. 2015 ) + 19.062 (Jan. 2016 ) = $70.9 Mil.

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

Oil-Dri Corp of America's Gross Margin for the quarter that ended in Jan. 2016 is calculated as

Gross Margin (Q: Jan. 2016 )=Gross Profit (Q: Jan. 2016 ) / Revenue (Q: Jan. 2016 )
=(Revenue - Cost of Goods Sold) / Revenue
=19.1 / 65.367
=29.16 %

* 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

Oil-Dri Corp of America had a gross margin of 29.16% for the quarter that ended in Jan. 2016 => Competition eroding margins


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.

Oil-Dri Corp of America Annual Data

Jul06Jul07Jul08Jul09Jul10Jul11Jul12Jul13Jul14Jul15
Gross_Profit 38.145.746.149.449.750.059.066.559.760.2

Oil-Dri Corp of America Quarterly Data

Oct13Jan14Apr14Jul14Oct14Jan15Apr15Jul15Oct15Jan16
Gross_Profit 16.516.913.912.413.815.214.416.720.719.1
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