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Sturm Ruger & Co Inc (NYSE:RGR)
Gross Profit
$198.1 Mil (TTM As of Jun. 2016)

Sturm Ruger & Co Inc's gross profit for the three months ended in Jun. 2016 was $56.7 Mil. Sturm Ruger & Co Inc's gross profit for the trailing twelve months (TTM) ended in Jun. 2016 was $198.1 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Sturm Ruger & Co Inc's gross profit for the three months ended in Jun. 2016 was $56.7 Mil. Sturm Ruger & Co Inc's revenue for the three months ended in Jun. 2016 was $167.9 Mil. Therefore, Sturm Ruger & Co Inc's Gross Margin for the quarter that ended in Jun. 2016 was 33.76%.

Sturm Ruger & Co Inc had a gross margin of 33.76% for the quarter that ended in Jun. 2016 => Competition eroding margins

During the past 13 years, the highest Gross Margin of Sturm Ruger & Co Inc was 37.57%. The lowest was 14.46%. And the median was 31.79%.

Warning Sign:

Sturm Ruger & Co Inc gross margin has been in long term decline. The average rate of decline per year is -1.4%.


Definition

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

Sturm Ruger & Co Inc's Gross Profit for the fiscal year that ended in Dec. 2015 is calculated as

Gross Profit (A: Dec. 2015 )=Revenue - Cost of Goods Sold
=551.094 - 378.934
=172.2

Sturm Ruger & Co Inc's Gross Profit for the quarter that ended in Jun. 2016 is calculated as

Gross Profit (Q: Jun. 2016 )=Revenue - Cost of Goods Sold
=167.944 - 111.25
=56.7

Sturm Ruger & Co Inc Gross Profit for the trailing twelve months (TTM) ended in Jun. 2016 was 34.011 (Sep. 2015 ) + 48.243 (Dec. 2015 ) + 59.113 (Mar. 2016 ) + 56.694 (Jun. 2016 ) = $198.1 Mil.

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

Sturm Ruger & Co Inc's Gross Margin for the quarter that ended in Jun. 2016 is calculated as

Gross Margin (Q: Jun. 2016 )=Gross Profit (Q: Jun. 2016 ) / Revenue (Q: Jun. 2016 )
=(Revenue - Cost of Goods Sold) / Revenue
=56.7 / 167.944
=33.76 %

* 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

Sturm Ruger & Co Inc had a gross margin of 33.76% for the quarter that ended in Jun. 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.

Sturm Ruger & Co Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
Gross_Profit 24.239.342.887.684.0111.8179.0258.6169.2172.2

Sturm Ruger & Co Inc Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
Gross_Profit 61.150.423.734.041.448.534.048.259.156.7
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