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Adept Technology Inc  (NAS:ADEP) Gross Profit: \$22.75 Mil (TTM As of Jun. 2015)

Adept Technology Inc's gross profit for the three months ended in Jun. 2015 was \$5.41 Mil. Adept Technology Inc's gross profit for the trailing twelve months (TTM) ended in Jun. 2015 was \$22.75 Mil.

Gross Margin % is calculated as gross profit divided by its revenue. Adept Technology Inc's gross profit for the three months ended in Jun. 2015 was \$5.41 Mil. Adept Technology Inc's Revenue for the three months ended in Jun. 2015 was \$13.88 Mil. Therefore, Adept Technology Inc's Gross Margin % for the quarter that ended in Jun. 2015 was 39.00%.

Adept Technology Inc had a gross margin of 39.00% for the quarter that ended in Jun. 2015 => Competition eroding margins

Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

 Jun06 Jun07 Jun08 Jun09 Jun10 Jun11 Jun12 Jun13 Jun14 Jun15 Gross Profit 24.90 28.00 19.12 26.62 22.75

 Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Gross Profit 6.61 6.44 5.06 5.84 5.41

Competitive Comparison
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap.

Calculation

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

Adept Technology Inc's Gross Profit for the fiscal year that ended in Jun. 2015 is calculated as

 Gross Profit (A: Jun. 2015 ) = Revenue - Cost of Goods Sold = 54.195 - 31.441 = 22.75

Adept Technology Inc's Gross Profit for the quarter that ended in Jun. 2015 is calculated as

 Gross Profit (Q: Jun. 2015 ) = Revenue - Cost of Goods Sold = 13.882 - 8.468 = 5.41

Gross Profit for the trailing twelve months (TTM) ended in Jun. 2015 was 6.443 (Sep. 2014 ) + 5.06 (Dec. 2014 ) + 5.837 (Mar. 2015 ) + 5.414 (Jun. 2015 ) = \$22.75 Mil.

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

Adept Technology Inc's Gross Margin % for the quarter that ended in Jun. 2015 is calculated as

 Gross Margin % (Q: Jun. 2015 ) = Gross Profit (Q: Jun. 2015 ) / Revenue (Q: Jun. 2015 ) = (Revenue - Cost of Goods Sold) / Revenue = 5.41 / 13.882 = 39.00 %

* 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

Adept Technology Inc had a gross margin of 39.00% for the quarter that ended in Jun. 2015 => Competition eroding margins

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