Switch to:
Premier Exhibitions, Inc. (NAS:PRXI)
Gross Profit
$14.42 Mil (TTM As of Nov. 2013)

Premier Exhibitions, Inc.'s gross profit for the three months ended in Nov. 2013 was $2.35 Mil. Premier Exhibitions, Inc.'s gross profit for the trailing twelve months (TTM) ended in Nov. 2013 was $14.42 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Premier Exhibitions, Inc.'s gross profit for the three months ended in Nov. 2013 was $2.35 Mil. Premier Exhibitions, Inc.'s revenue for the three months ended in Nov. 2013 was $6.39 Mil. Therefore, Premier Exhibitions, Inc.'s Gross Margin for the quarter that ended in Nov. 2013 was 36.76%.

Premier Exhibitions, Inc. had a gross margin of 36.76% for the quarter that ended in Nov. 2013 => Competition eroding margins

During the past 13 years, the highest Gross Margin of Premier Exhibitions, Inc. was 99.77%. The lowest was 25.23%. And the median was 76.20%.

Warning Sign:

Premier Exhibitions, Inc. gross margin has been in long term decline. The average rate of decline per year is -4.1%.


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. 2013 is calculated as

Gross Profit (A: Feb. 2013 )=Revenue - Cost of Goods Sold
=39.465 - 18.745
=20.72

Premier Exhibitions, Inc.'s Gross Profit for the quarter that ended in Nov. 2013 is calculated as

Gross Profit (Q: Nov. 2013 )=Revenue - Cost of Goods Sold
=6.392 - 4.042
=2.35

Premier Exhibitions, Inc. Gross Profit for the trailing twelve months (TTM) ended in Nov. 2013 was 2.77 (Feb. 2013 ) + 5.293 (May. 2013 ) + 4.004 (Aug. 2013 ) + 2.35 (Nov. 2013 ) = $14.42 Mil.

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

Premier Exhibitions, Inc.'s Gross Margin for the quarter that ended in Nov. 2013 is calculated as

Gross Margin (Q: Nov. 2013 )=Gross Profit (Q: Nov. 2013 ) / Revenue (Q: Nov. 2013 )
=(Revenue - Cost of Goods Sold) / Revenue
=2.35 / 6.392
=36.76 %

* 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 36.76% for the quarter that ended in Nov. 2013 => 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.

Premier Exhibitions, Inc. Annual Data

Feb04Feb05Feb06Feb07Feb08Feb09Feb10Feb11Feb12Feb13
Gross_Profit 2.733.7010.2622.1940.5222.6519.3611.2914.4520.72

Premier Exhibitions, Inc. Quarterly Data

Aug11Nov11Feb12May12Aug12Nov12Feb13May13Aug13Nov13
Gross_Profit 3.532.273.116.278.193.492.775.294.002.35
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)
Free 7-day Trial
FEEDBACK
Hide