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Premier Exhibitions Inc (NAS:PRXI)
Gross Profit
\$6.32 Mil (TTM As of Aug. 2015)

Premier Exhibitions Inc's gross profit for the three months ended in Aug. 2015 was \$1.08 Mil. Premier Exhibitions Inc's gross profit for the trailing twelve months (TTM) ended in Aug. 2015 was \$6.32 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Premier Exhibitions Inc's gross profit for the three months ended in Aug. 2015 was \$1.08 Mil. Premier Exhibitions Inc's revenue for the three months ended in Aug. 2015 was \$6.74 Mil. Therefore, Premier Exhibitions Inc's Gross Margin for the quarter that ended in Aug. 2015 was 16.07%.

Premier Exhibitions Inc had a gross margin of 16.07% for the quarter that ended in Aug. 2015 => No sustainable competitive advantage

During the past 13 years, the highest Gross Margin of Premier Exhibitions Inc was 78.65%. The lowest was 25.23%. And the median was 46.60%.

Definition

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

Premier Exhibitions Inc's Gross Profit for the fiscal year that ended in Feb. 2015 is calculated as

 Gross Profit (A: Feb. 2015 ) = Revenue - Cost of Goods Sold = 29.39 - 19.784 = 9.61

Premier Exhibitions Inc's Gross Profit for the quarter that ended in Aug. 2015 is calculated as

 Gross Profit (Q: Aug. 2015 ) = Revenue - Cost of Goods Sold = 6.739 - 5.656 = 1.08

Premier Exhibitions Inc Gross Profit for the trailing twelve months (TTM) ended in Aug. 2015 was 1.943 (Nov. 2014 ) + 1.552 (Feb. 2015 ) + 1.74 (May. 2015 ) + 1.083 (Aug. 2015 ) = \$6.32 Mil.

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

Premier Exhibitions Inc's Gross Margin for the quarter that ended in Aug. 2015 is calculated as

 Gross Margin (Q: Aug. 2015 ) = Gross Profit (Q: Aug. 2015 ) / Revenue (Q: Aug. 2015 ) = (Revenue - Cost of Goods Sold) / Revenue = 1.08 / 6.739 = 16.07 %

* 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

Premier Exhibitions Inc had a gross margin of 16.07% for the quarter that ended in Aug. 2015 => No sustainable 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.

Premier Exhibitions Inc Annual Data

 Feb06 Feb07 Feb08 Feb09 Feb10 Feb11 Feb12 Feb13 Feb14 Feb15 Gross_Profit 10.26 22.19 40.52 22.65 19.36 11.29 14.45 20.72 13.98 9.61

Premier Exhibitions Inc Quarterly Data

 May13 Aug13 Nov13 Feb14 May14 Aug14 Nov14 Feb15 May15 Aug15 Gross_Profit 5.29 4.00 2.35 2.33 3.08 3.03 1.94 1.55 1.74 1.08
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