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Stewart Enterprises, Inc. (NAS:STEI)
Gross Profit
\$115.6 Mil (TTM As of Jul. 2013)

Stewart Enterprises, Inc.'s gross profit for the three months ended in Jul. 2013 was \$23.2 Mil. Stewart Enterprises, Inc.'s gross profit for the trailing twelve months (TTM) ended in Jul. 2013 was \$115.6 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Stewart Enterprises, Inc.'s gross profit for the three months ended in Jul. 2013 was \$23.2 Mil. Stewart Enterprises, Inc.'s revenue for the three months ended in Jul. 2013 was \$127.1 Mil. Therefore, Stewart Enterprises, Inc.'s Gross Margin for the quarter that ended in Jul. 2013 was 18.25%.

Stewart Enterprises, Inc. had a gross margin of 18.25% for the quarter that ended in Jul. 2013 => No sustainable competitive advantage

Definition

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

Stewart Enterprises, Inc.'s Gross Profit for the fiscal year that ended in Oct. 2012 is calculated as

 Gross Profit (A: Oct. 2012 ) = Revenue - Cost of Goods Sold = 516.097 - 406.415 = 109.7

Stewart Enterprises, Inc.'s Gross Profit for the quarter that ended in Jul. 2013 is calculated as

 Gross Profit (Q: Jul. 2013 ) = Revenue - Cost of Goods Sold = 127.062 - 103.867 = 23.2

Stewart Enterprises, Inc. Gross Profit for the trailing twelve months (TTM) ended in Jul. 2013 was 28.162 (Oct. 2012 ) + 32.316 (Jan. 2013 ) + 31.967 (Apr. 2013 ) + 23.195 (Jul. 2013 ) = \$115.6 Mil.

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

Stewart Enterprises, Inc.'s Gross Margin for the quarter that ended in Jul. 2013 is calculated as

 Gross Margin (Q: Jul. 2013 ) = Gross Profit (Q: Jul. 2013 ) / Revenue (Q: Jul. 2013 ) = (Revenue - Cost of Goods Sold) / Revenue = 23.2 / 127.062 = 18.25 %

* 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

Stewart Enterprises, Inc. had a gross margin of 18.25% for the quarter that ended in Jul. 2013 => No sustainable competitive advantage

Related Terms

Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Stewart Enterprises, Inc. Annual Data

 Oct04 Oct05 Oct06 Oct07 Oct08 Oct09 Oct10 Oct11 Oct12 Oct13 Gross_Profit 115.0 101.5 114.6 112.4 100.6 87.6 96.7 100.4 109.7 113.6

Stewart Enterprises, Inc. Quarterly Data

 Jul11 Oct11 Jan12 Apr12 Jul12 Oct12 Jan13 Apr13 Jul13 Oct13 Gross_Profit 21.8 24.7 25.4 29.1 27.0 28.2 32.3 32.0 23.2 26.1
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