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Sirona Dental Systems, Inc. (NAS:SIRO)
Gross Profit
$602 Mil (TTM As of Dec. 2013)

Sirona Dental Systems, Inc.'s gross profit for the three months ended in Dec. 2013 was $163 Mil. Sirona Dental Systems, Inc.'s gross profit for the trailing twelve months (TTM) ended in Dec. 2013 was $602 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Sirona Dental Systems, Inc.'s gross profit for the three months ended in Dec. 2013 was $163 Mil. Sirona Dental Systems, Inc.'s revenue for the three months ended in Dec. 2013 was $299 Mil. Therefore, Sirona Dental Systems, Inc.'s Gross Margin for the quarter that ended in Dec. 2013 was 54.48%.

Sirona Dental Systems, Inc. had a gross margin of 54.48% for the quarter that ended in Dec. 2013 => Durable competitive advantage

During the past 13 years, the highest Gross Margin of Sirona Dental Systems, Inc. was 71.66%. The lowest was 12.12%. And the median was 52.92%.


Definition

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

Sirona Dental Systems, Inc.'s Gross Profit for the fiscal year that ended in Sep. 2013 is calculated as

Gross Profit (A: Sep. 2013 )=Revenue - Cost of Goods Sold
=1101.491 - 510.136
=591

Sirona Dental Systems, Inc.'s Gross Profit for the quarter that ended in Dec. 2013 is calculated as

Gross Profit (Q: Dec. 2013 )=Revenue - Cost of Goods Sold
=298.726 - 135.995
=163

Sirona Dental Systems, Inc. Gross Profit for the trailing twelve months (TTM) ended in Dec. 2013 was 144.706 (Mar. 2013 ) + 151.487 (Jun. 2013 ) + 143.291 (Sep. 2013 ) + 162.731 (Dec. 2013 ) = $602 Mil.

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

Sirona Dental Systems, Inc.'s Gross Margin for the quarter that ended in Dec. 2013 is calculated as

Gross Margin (Q: Dec. 2013 )=Gross Profit (Q: Dec. 2013 ) / Revenue (Q: Dec. 2013 )
=(Revenue - Cost of Goods Sold) / Revenue
=163 / 298.726
=54.48 %

* 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

Sirona Dental Systems, Inc. had a gross margin of 54.48% for the quarter that ended in Dec. 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.

Sirona Dental Systems, Inc. Annual Data

Mar05Mar06Sep06Sep07Sep08Sep09Sep10Sep11Sep12Sep13
Gross_Profit 3849242304346346399484524591

Sirona Dental Systems, Inc. Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
Gross_Profit 111139125128132152145151143163
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