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TSR Inc (NAS:TSRI)
Gross Profit
\$10.04 Mil (TTM As of Aug. 2016)

TSR Inc's gross profit for the three months ended in Aug. 2016 was \$2.60 Mil. TSR Inc's gross profit for the trailing twelve months (TTM) ended in Aug. 2016 was \$10.04 Mil.

Gross Margin is calculated as gross profit divided by its revenue. TSR Inc's gross profit for the three months ended in Aug. 2016 was \$2.60 Mil. TSR Inc's revenue for the three months ended in Aug. 2016 was \$15.24 Mil. Therefore, TSR Inc's Gross Margin for the quarter that ended in Aug. 2016 was 17.06%.

TSR Inc had a gross margin of 17.06% for the quarter that ended in Aug. 2016 => No sustainable competitive advantage

During the past 13 years, the highest Gross Margin of TSR Inc was 18.42%. The lowest was 16.23%. And the median was 17.20%.

Warning Sign:

TSR Inc gross margin has been in long term decline. The average rate of decline per year is -1.7%.

Definition

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

TSR Inc's Gross Profit for the fiscal year that ended in May. 2016 is calculated as

 Gross Profit (A: May. 2016 ) = Revenue - Cost of Goods Sold = 60.998 - 51.039 = 9.96

TSR Inc's Gross Profit for the quarter that ended in Aug. 2016 is calculated as

 Gross Profit (Q: Aug. 2016 ) = Revenue - Cost of Goods Sold = 15.242 - 12.641 = 2.60

TSR Inc Gross Profit for the trailing twelve months (TTM) ended in Aug. 2016 was 2.506 (Nov. 2015 ) + 2.305 (Feb. 2016 ) + 2.629 (May. 2016 ) + 2.601 (Aug. 2016 ) = \$10.04 Mil.

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

TSR Inc's Gross Margin for the quarter that ended in Aug. 2016 is calculated as

 Gross Margin (Q: Aug. 2016 ) = Gross Profit (Q: Aug. 2016 ) / Revenue (Q: Aug. 2016 ) = (Revenue - Cost of Goods Sold) / Revenue = 2.60 / 15.242 = 17.06 %

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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

TSR Inc had a gross margin of 17.06% for the quarter that ended in Aug. 2016 => 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 local exchange's currency.

TSR Inc Annual Data

 May07 May08 May09 May10 May11 May12 May13 May14 May15 May16 Gross_Profit 9.16 9.42 7.68 6.53 7.19 7.46 7.37 8.28 9.32 9.96

TSR Inc Quarterly Data

 May14 Aug14 Nov14 Feb15 May15 Aug15 Nov15 Feb16 May16 Aug16 Gross_Profit 2.19 2.30 2.45 2.13 2.43 2.52 2.51 2.31 2.63 2.60
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