Switch to:
Steelcase Inc (NYSE:SCS)
Gross Profit
$937 Mil (TTM As of Nov. 2014)

Steelcase Inc's gross profit for the three months ended in Nov. 2014 was $215 Mil. Steelcase Inc's gross profit for the trailing twelve months (TTM) ended in Nov. 2014 was $937 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Steelcase Inc's gross profit for the three months ended in Nov. 2014 was $215 Mil. Steelcase Inc's revenue for the three months ended in Nov. 2014 was $800 Mil. Therefore, Steelcase Inc's Gross Margin for the quarter that ended in Nov. 2014 was 26.86%.

Steelcase Inc had a gross margin of 26.86% for the quarter that ended in Nov. 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 Nov. 2014 is calculated as

Gross Profit (Q: Nov. 2014 )=Revenue - Cost of Goods Sold
=800 - 585.1
=215

Steelcase Inc Gross Profit for the trailing twelve months (TTM) ended in Nov. 2014 was 248.4 (Feb. 2014 ) + 229.1 (May. 2014 ) + 244.4 (Aug. 2014 ) + 214.9 (Nov. 2014 ) = $937 Mil.

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

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

Gross Margin (Q: Nov. 2014 )=Gross Profit (Q: Nov. 2014 ) / Revenue (Q: Nov. 2014 )
=(Revenue - Cost of Goods Sold) / Revenue
=215 / 800
=26.86 %

* 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 26.86% for the quarter that ended in Nov. 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

Aug12Nov12Feb13May13Aug13Nov13Feb14May14Aug14Nov14
Gross_Profit 228226216210244243248229244215
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