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Usana Health Sciences Inc (NYSE:USNA)
Gross Profit
$826 Mil (TTM As of Dec. 2016)

Usana Health Sciences Inc's gross profit for the three months ended in Dec. 2016 was $207 Mil. Usana Health Sciences Inc's gross profit for the trailing twelve months (TTM) ended in Dec. 2016 was $826 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Usana Health Sciences Inc's gross profit for the three months ended in Dec. 2016 was $207 Mil. Usana Health Sciences Inc's revenue for the three months ended in Dec. 2016 was $253 Mil. Therefore, Usana Health Sciences Inc's Gross Margin for the quarter that ended in Dec. 2016 was 81.68%.

Usana Health Sciences Inc had a gross margin of 81.68% for the quarter that ended in Dec. 2016 => Durable competitive advantage

During the past 13 years, the highest Gross Margin of Usana Health Sciences Inc was 82.61%. The lowest was 79.23%. And the median was 82.12%.


Definition

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

Usana Health Sciences Inc's Gross Profit for the fiscal year that ended in Dec. 2016 is calculated as

Gross Profit (A: Dec. 2016 )=Revenue - Cost of Goods Sold
=1006.083 - 180.19
=826

Usana Health Sciences Inc's Gross Profit for the quarter that ended in Dec. 2016 is calculated as

Gross Profit (Q: Dec. 2016 )=Revenue - Cost of Goods Sold
=252.901 - 46.321
=207

Usana Health Sciences Inc Gross Profit for the trailing twelve months (TTM) ended in Dec. 2016 was 197.529 (Mar. 2016 ) + 212.544 (Jun. 2016 ) + 209.24 (Sep. 2016 ) + 206.58 (Dec. 2016 ) = $826 Mil.

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

Usana Health Sciences Inc's Gross Margin for the quarter that ended in Dec. 2016 is calculated as

Gross Margin (Q: Dec. 2016 )=Gross Profit (Q: Dec. 2016 ) / Revenue (Q: Dec. 2016 )
=(Revenue - Cost of Goods Sold) / Revenue
=207 / 252.901
=81.68 %

* 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

Usana Health Sciences Inc had a gross margin of 81.68% for the quarter that ended in Dec. 2016 => 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 local exchange's currency.

Usana Health Sciences Inc Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
Gross_Profit 335340347422480533591650759826

Usana Health Sciences Inc Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
Gross_Profit 157190181193192192198213209207
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