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Griffin Land & Nurseries Inc (NAS:GRIF)
Gross Margin
66.72% (As of Aug. 2014)

Gross Margin is calculated as gross profit divided by its revenue. Griffin Land & Nurseries Inc's gross profit for the three months ended in Aug. 2014 was $4.07 Mil. Griffin Land & Nurseries Inc's revenue for the three months ended in Aug. 2014 was $6.10 Mil. Therefore, Griffin Land & Nurseries Inc's Gross Margin for the quarter that ended in Aug. 2014 was 66.72%.

GRIF' s 10-Year Gross Margin Range
Min: 3.1   Max: 170.34
Current: 147.34

3.1
170.34

During the past 13 years, the highest Gross Margin of Griffin Land & Nurseries Inc was 170.34%. The lowest was 3.10%. And the median was 25.51%.

GRIF's Gross Marginis ranked lower than
100% of the Companies
in the Global Real Estate Services industry.

( Industry Median: vs. GRIF: 147.34 )

Griffin Land & Nurseries Inc had a gross margin of 66.72% for the quarter that ended in Aug. 2014 => Durable competitive advantage

The 3-Year average Growth Rate of Gross Margin for Griffin Land & Nurseries Inc was 68.30% per year.


Definition

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

Griffin Land & Nurseries Inc's Gross Margin for the fiscal year that ended in Nov. 2013 is calculated as

Gross Margin (A: Nov. 2013 )=Gross Profit (A: Nov. 2013 ) / Revenue (A: Nov. 2013 )
=16.9 / 25.526
=(Revenue - Cost of Goods Sold) / Revenue
=(25.526 - 8.627) / 25.526
=66.20 %

Griffin Land & Nurseries Inc's Gross Margin for the quarter that ended in Aug. 2014 is calculated as

Gross Margin (Q: Aug. 2014 )=Gross Profit (Q: Aug. 2014 ) / Revenue (Q: Aug. 2014 )
=4.1 / 6.099
=(Revenue - Cost of Goods Sold) / Revenue
=(6.099 - 2.03) / 6.099
=66.72 %

* 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

Griffin Land & Nurseries Inc had a gross margin of 66.72% for the quarter that ended in Aug. 2014 => 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.

Griffin Land & Nurseries Inc Annual Data

Nov04Nov05Nov06Nov07Nov08Nov09Nov10Nov11Nov12Nov13
Gross Margin 13.3214.3223.0936.113.1013.5419.9825.5132.9766.20

Griffin Land & Nurseries Inc Quarterly Data

May12Aug12Nov12Feb13May13Aug13Nov13Feb14May14Aug14
Gross Margin 20.7650.7424.0133.2027.5125.10-239.0151.0865.9866.72
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