Switch to:
Resource America, Inc. (NAS:REXI)
Gross Profit
$89.4 Mil (TTM As of Sep. 2013)

Resource America, Inc.'s gross profit for the three months ended in Sep. 2013 was $28.2 Mil. Resource America, Inc.'s gross profit for the trailing twelve months (TTM) ended in Sep. 2013 was $89.4 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Resource America, Inc.'s gross profit for the three months ended in Sep. 2013 was $28.2 Mil. Resource America, Inc.'s revenue for the three months ended in Sep. 2013 was $43.0 Mil. Therefore, Resource America, Inc.'s Gross Margin for the quarter that ended in Sep. 2013 was 65.60%.

Resource America, Inc. had a gross margin of 65.60% for the quarter that ended in Sep. 2013 => Durable competitive advantage

During the past 13 years, the highest Gross Margin of Resource America, Inc. was 100.00%. The lowest was 32.33%. And the median was 57.44%.


Definition

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

Resource America, Inc.'s Gross Profit for the fiscal year that ended in Sep. 2012 is calculated as

Gross Profit (A: Sep. 2012 )=Revenue - Cost of Goods Sold
=170.9 - 49.169
=121.7

Resource America, Inc.'s Gross Profit for the quarter that ended in Sep. 2013 is calculated as

Gross Profit (Q: Sep. 2013 )=Revenue - Cost of Goods Sold
=43.025 - 14.8
=28.2

Resource America, Inc. Gross Profit for the trailing twelve months (TTM) ended in Sep. 2013 was 6.739 (Dec. 2012 ) + 31.314 (Mar. 2013 ) + 23.114 (Jun. 2013 ) + 28.225 (Sep. 2013 ) = $89.4 Mil.

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

Resource America, Inc.'s Gross Margin for the quarter that ended in Sep. 2013 is calculated as

Gross Margin (Q: Sep. 2013 )=Gross Profit (Q: Sep. 2013 ) / Revenue (Q: Sep. 2013 )
=(Revenue - Cost of Goods Sold) / Revenue
=28.2 / 43.025
=65.60 %

* 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

Resource America, Inc. had a gross margin of 65.60% for the quarter that ended in Sep. 2013 => Durable competitive advantage


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.

Resource America, Inc. Annual Data

Sep04Sep05Sep06Sep07Sep08Sep09Sep10Sep11Dec11Sep12
Gross_Profit 8.219.237.372.862.939.828.8106.7142.3121.7

Resource America, Inc. Quarterly Data

Jun11Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13
Gross_Profit 12.988.93.72.83.3112.06.731.323.128.2
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