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Steelcase Inc (NYSE:SCS)
Gross Profit
$965 Mil (TTM As of Aug. 2014)

Steelcase Inc's gross profit for the three months ended in Aug. 2014 was $244 Mil. Steelcase Inc's gross profit for the trailing twelve months (TTM) ended in Aug. 2014 was $965 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Steelcase Inc's gross profit for the three months ended in Aug. 2014 was $244 Mil. Steelcase Inc's revenue for the three months ended in Aug. 2014 was $787 Mil. Therefore, Steelcase Inc's Gross Margin for the quarter that ended in Aug. 2014 was 31.07%.

Steelcase Inc had a gross margin of 31.07% for the quarter that ended in Aug. 2014 => Competition eroding margins

During the past 13 years, the highest Gross Margin of Steelcase Inc was 39.81%. The lowest was 26.23%. And the median was 30.20%.


Definition

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

Steelcase Inc's Gross Profit for the fiscal year that ended in Feb. 2014 is calculated as

Gross Profit (A: Feb. 2014 )=Revenue - Cost of Goods Sold
=2988.9 - 2043.7
=945

Steelcase Inc's Gross Profit for the quarter that ended in Aug. 2014 is calculated as

Gross Profit (Q: Aug. 2014 )=Revenue - Cost of Goods Sold
=786.7 - 542.3
=244

Steelcase Inc Gross Profit for the trailing twelve months (TTM) ended in Aug. 2014 was 242.8 (Nov. 2013 ) + 248.4 (Feb. 2014 ) + 229.1 (May. 2014 ) + 244.4 (Aug. 2014 ) = $965 Mil.

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

Steelcase Inc's Gross Margin for the quarter that ended in Aug. 2014 is calculated as

Gross Margin (Q: Aug. 2014 )=Gross Profit (Q: Aug. 2014 ) / Revenue (Q: Aug. 2014 )
=(Revenue - Cost of Goods Sold) / Revenue
=244 / 786.7
=31.07 %

* 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

Steelcase Inc had a gross margin of 31.07% for the quarter that ended in Aug. 2014 => 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.

Steelcase Inc Annual Data

Feb05Feb06Feb07Feb08Feb09Feb10Feb11Feb12Feb13Feb14
Gross_Profit 7468469481,099923650718810866945

Steelcase Inc Quarterly Data

May12Aug12Nov12Feb13May13Aug13Nov13Feb14May14Aug14
Gross_Profit 196228226216210244243248229244
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