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Griffin Industrial Realty Inc (NAS:GRIF)
Gross Margin
69.47% (As of May. 2016)

Gross Margin is calculated as gross profit divided by its revenue. Griffin Industrial Realty Inc's gross profit for the three months ended in May. 2016 was $4.53 Mil. Griffin Industrial Realty Inc's revenue for the three months ended in May. 2016 was $6.52 Mil. Therefore, Griffin Industrial Realty Inc's Gross Margin for the quarter that ended in May. 2016 was 69.47%.

GRIF' s Gross Margin Range Over the Past 10 Years
Min: 3.1   Max: 67.78
Current: 70.21

3.1
67.78

During the past 13 years, the highest Gross Margin of Griffin Industrial Realty Inc was 67.78%. The lowest was 3.10%. And the median was 29.24%.

GRIF's Gross Margin is ranked higher than
73% of the 1530 Companies
in the Global Real Estate Services industry.

( Industry Median: 40.88 vs. GRIF: 70.21 )

Griffin Industrial Realty Inc had a gross margin of 69.47% for the quarter that ended in May. 2016 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Griffin Industrial Realty Inc was 31.50% per year.


Definition

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

Griffin Industrial Realty 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 )
=19 / 28.088
=(Revenue - Cost of Goods Sold) / Revenue
=(28.088 - 9.049) / 28.088
=67.78 %

Griffin Industrial Realty 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 )
=4.5 / 6.524
=(Revenue - Cost of Goods Sold) / Revenue
=(6.524 - 1.992) / 6.524
=69.47 %

* 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 Industrial Realty Inc had a gross margin of 69.47% 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.

Griffin Industrial Realty Inc Annual Data

Nov06Nov07Nov08Nov09Nov10Nov11Nov12Nov13Nov14Nov15
Gross Margin 23.0936.113.1013.5419.9825.5132.9766.2064.4767.78

Griffin Industrial Realty Inc Quarterly Data

Feb14May14Aug14Nov14Feb15May15Aug15Nov15Feb16May16
Gross Margin 51.0865.9866.7270.4458.0167.8872.0671.1767.5869.47
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