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Caldwell Partners International Inc (TSX:CWL)
Gross Profit
C$10.70 Mil (TTM As of May. 2014)

Caldwell Partners International Inc's gross profit for the three months ended in May. 2014 was C$3.09 Mil. Caldwell Partners International Inc's gross profit for the trailing twelve months (TTM) ended in May. 2014 was C$10.70 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Caldwell Partners International Inc's gross profit for the three months ended in May. 2014 was C$3.09 Mil. Caldwell Partners International Inc's revenue for the three months ended in May. 2014 was C$12.36 Mil. Therefore, Caldwell Partners International Inc's Gross Margin for the quarter that ended in May. 2014 was 25.00%.

Caldwell Partners International Inc had a gross margin of 25.00% for the quarter that ended in May. 2014 => Competition eroding margins

During the past 13 years, the highest Gross Margin of Caldwell Partners International Inc was 100.00%. The lowest was 7.73%. And the median was 100.00%.

Warning Sign:

Caldwell Partners International Inc gross margin has been in long term decline. The average rate of decline per year is -10.5%.


Definition

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

Caldwell Partners International Inc's Gross Profit for the fiscal year that ended in Aug. 2013 is calculated as

Gross Profit (A: Aug. 2013 )=Revenue - Cost of Goods Sold
=33.803 - 26.005
=7.80

Caldwell Partners International Inc's Gross Profit for the quarter that ended in May. 2014 is calculated as

Gross Profit (Q: May. 2014 )=Revenue - Cost of Goods Sold
=12.359 - 9.269
=3.09

Caldwell Partners International Inc Gross Profit for the trailing twelve months (TTM) ended in May. 2014 was 2.731 (Aug. 2013 ) + 2.584 (Nov. 2013 ) + 2.298 (Feb. 2014 ) + 3.09 (May. 2014 ) = C$10.70 Mil.

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

Caldwell Partners International Inc's Gross Margin for the quarter that ended in May. 2014 is calculated as

Gross Margin (Q: May. 2014 )=Gross Profit (Q: May. 2014 ) / Revenue (Q: May. 2014 )
=(Revenue - Cost of Goods Sold) / Revenue
=3.09 / 12.359
=25.00 %

* 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

Caldwell Partners International Inc had a gross margin of 25.00% for the quarter that ended in May. 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.

Caldwell Partners International Inc Annual Data

Aug04Aug05Aug06Aug07Aug08Aug09Aug10Aug11Aug12Aug13
Gross_Profit 11.5314.0613.5215.5417.211.256.167.548.127.80

Caldwell Partners International Inc Quarterly Data

Feb12May12Aug12Nov12Feb13May13Aug13Nov13Feb14May14
Gross_Profit 1.552.602.621.801.232.042.732.582.303.09
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