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PennantPark Floating Rate Capital Ltd (NAS:PFLT)
Gross Profit
\$41.29 Mil (TTM As of Sep. 2016)

PennantPark Floating Rate Capital Ltd's gross profit for the three months ended in Sep. 2016 was \$13.94 Mil. PennantPark Floating Rate Capital Ltd's gross profit for the trailing twelve months (TTM) ended in Sep. 2016 was \$41.29 Mil.

Gross Margin is calculated as gross profit divided by its revenue. PennantPark Floating Rate Capital Ltd's gross profit for the three months ended in Sep. 2016 was \$13.94 Mil. PennantPark Floating Rate Capital Ltd's revenue for the three months ended in Sep. 2016 was \$15.40 Mil. Therefore, PennantPark Floating Rate Capital Ltd's Gross Margin for the quarter that ended in Sep. 2016 was 90.52%.

PennantPark Floating Rate Capital Ltd had a gross margin of 90.52% for the quarter that ended in Sep. 2016 => Durable competitive advantage

During the past 6 years, the highest Gross Margin of PennantPark Floating Rate Capital Ltd was 89.17%. The lowest was 87.64%. And the median was 88.23%.

Definition

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

PennantPark Floating Rate Capital Ltd's Gross Profit for the fiscal year that ended in Sep. 2016 is calculated as

 Gross Profit (A: Sep. 2016 ) = Revenue - Cost of Goods Sold = 46.301 - 5.015 = 41.29

PennantPark Floating Rate Capital Ltd's Gross Profit for the quarter that ended in Sep. 2016 is calculated as

 Gross Profit (Q: Sep. 2016 ) = Revenue - Cost of Goods Sold = 15.395 - 1.459 = 13.94

PennantPark Floating Rate Capital Ltd Gross Profit for the trailing twelve months (TTM) ended in Sep. 2016 was 7.679 (Dec. 2015 ) + 10.165 (Mar. 2016 ) + 9.505 (Jun. 2016 ) + 13.937 (Sep. 2016 ) = \$41.29 Mil.

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

PennantPark Floating Rate Capital Ltd's Gross Margin for the quarter that ended in Sep. 2016 is calculated as

 Gross Margin (Q: Sep. 2016 ) = Gross Profit (Q: Sep. 2016 ) / Revenue (Q: Sep. 2016 ) = (Revenue - Cost of Goods Sold) / Revenue = 13.94 / 15.395 = 90.52 %

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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

PennantPark Floating Rate Capital Ltd had a gross margin of 90.52% for the quarter that ended in Sep. 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 local exchange's currency.

PennantPark Floating Rate Capital Ltd Annual Data

 Sep11 Sep12 Sep13 Sep14 Sep15 Sep16 Gross_Profit 0.00 0.00 0.00 0.00 0.00 10.60 16.67 26.65 26.78 41.29

PennantPark Floating Rate Capital Ltd Quarterly Data

 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Gross_Profit 6.72 7.31 6.59 7.13 6.22 6.84 7.68 10.17 9.51 13.94
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