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Stantec Inc (NYSE:STN)
Gross Profit
$995 Mil (TTM As of Jun. 2014)

Stantec Inc's gross profit for the three months ended in Jun. 2014 was $270 Mil. Stantec Inc's gross profit for the trailing twelve months (TTM) ended in Jun. 2014 was $995 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Stantec Inc's gross profit for the three months ended in Jun. 2014 was $270 Mil. Stantec Inc's revenue for the three months ended in Jun. 2014 was $590 Mil. Therefore, Stantec Inc's Gross Margin for the quarter that ended in Jun. 2014 was 45.76%.

Stantec Inc had a gross margin of 45.76% for the quarter that ended in Jun. 2014 => Durable competitive advantage

During the past 13 years, the highest Gross Margin of Stantec Inc was 85.22%. The lowest was 44.82%. And the median was 55.19%.

Warning Sign:

Stantec Inc gross margin has been in long term decline. The average rate of decline per year is -1.2%.


Definition

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

Stantec Inc's Gross Profit for the fiscal year that ended in Dec. 2013 is calculated as

Gross Profit (A: Dec. 2013 )=Revenue - Cost of Goods Sold
=2044.25045704 - 1127.93144424
=916

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

Gross Profit (Q: Jun. 2014 )=Revenue - Cost of Goods Sold
=590.148044693 - 320.108938547
=270

Stantec Inc Gross Profit for the trailing twelve months (TTM) ended in Jun. 2014 was 253.852316602 (Sep. 2013 ) + 232.753199269 (Dec. 2013 ) + 238.064604186 (Mar. 2014 ) + 270.039106145 (Jun. 2014 ) = $995 Mil.

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

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

Gross Margin (Q: Jun. 2014 )=Gross Profit (Q: Jun. 2014 ) / Revenue (Q: Jun. 2014 )
=(Revenue - Cost of Goods Sold) / Revenue
=270 / 590.148044693
=45.76 %

* 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

Stantec Inc had a gross margin of 45.76% for the quarter that ended in Jun. 2014 => 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.

Stantec Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Gross_Profit 199251343466514670692754861916

Stantec Inc Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
Gross_Profit 203212222221226245254233238270
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