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Cryo-Cell International Inc (OTCPK:CCEL)
Gross Margin
75.21% (As of May. 2016)

Gross Margin is calculated as gross profit divided by its revenue. Cryo-Cell International Inc's gross profit for the three months ended in May. 2016 was $4.34 Mil. Cryo-Cell International Inc's revenue for the three months ended in May. 2016 was $5.77 Mil. Therefore, Cryo-Cell International Inc's Gross Margin for the quarter that ended in May. 2016 was 75.21%.

CCEL' s Gross Margin Range Over the Past 10 Years
Min: 62.25   Max: 75.45
Current: 74.02

62.25
75.45

During the past 13 years, the highest Gross Margin of Cryo-Cell International Inc was 75.45%. The lowest was 62.25%. And the median was 72.13%.

CCEL's Gross Margin is ranked higher than
69% of the 236 Companies
in the Global Medical Care industry.

( Industry Median: 45.27 vs. CCEL: 74.02 )

Cryo-Cell International Inc had a gross margin of 75.21% for the quarter that ended in May. 2016 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Cryo-Cell International Inc was -0.70% per year.


Definition

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Cryo-Cell International Inc's Gross Margin for the fiscal year that ended in Nov. 2015 is calculated as

Gross Margin (A: Nov. 2015 )=Gross Profit (A: Nov. 2015 ) / Revenue (A: Nov. 2015 )
=15.5 / 21.091
=(Revenue - Cost of Goods Sold) / Revenue
=(21.091 - 5.631) / 21.091
=73.30 %

Cryo-Cell International Inc's Gross Margin for the quarter that ended in May. 2016 is calculated as

Gross Margin (Q: May. 2016 )=Gross Profit (Q: May. 2016 ) / Revenue (Q: May. 2016 )
=4.3 / 5.773
=(Revenue - Cost of Goods Sold) / Revenue
=(5.773 - 1.431) / 5.773
=75.21 %

* 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

Cryo-Cell International Inc had a gross margin of 75.21% for the quarter that ended in May. 2016 => Durable competitive advantage


Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin and Operating Margin closely helps avoid value trap situations.


Related Terms

Operating Margin, Cost of Goods Sold, Gross Profit, Revenue


Historical Data

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

Cryo-Cell International Inc Annual Data

Nov06Nov07Nov08Nov09Nov10Nov11Nov12Nov13Nov14Nov15
Gross Margin 64.6962.2564.6272.2474.4675.4572.7971.9872.0273.31

Cryo-Cell International Inc Quarterly Data

Feb14May14Aug14Nov14Feb15May15Aug15Nov15Feb16May16
Gross Margin 74.9269.5569.6273.7173.6972.5472.2874.6173.8475.21
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