RONA (TSX:RON.PR.B.PFD) Gross Profit : C$1,176.96 Mil (TTM As of Mar. 2016)

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What is RONA Gross Profit?

RONA's gross profit for the three months ended in Mar. 2016 was C$243.01 Mil. RONA's gross profit for the trailing twelve months (TTM) ended in Mar. 2016 was C$1,176.96 Mil.

Gross Margin % is calculated as gross profit divided by its revenue. RONA's gross profit for the three months ended in Mar. 2016 was C$243.01 Mil. RONA's Revenue for the three months ended in Mar. 2016 was C$819.22 Mil. Therefore, RONA's Gross Margin % for the quarter that ended in Mar. 2016 was 29.66%.

RONA had a gross margin of 29.66% for the quarter that ended in Mar. 2016 => Competition eroding margins

During the past 13 years, the highest Gross Margin % of RONA was 27.54%. The lowest was 3.27%. And the median was 8.40%.

RONA Gross Profit Historical Data

The historical data trend for RONA's Gross Profit can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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RONA Gross Profit Chart

RONA Annual Data

Trend

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Gross Profit

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156.90

1,339.18

1,097.34

1,066.71

1,143.81

RONA Quarterly Data
	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16
Gross Profit	Get a 7-Day Free Trial															209.86	327.33	309.19	297.43	243.01

Competitive Comparison of RONA's Gross Profit

For the Home Improvement Retail subindustry, RONA's Gross Profit, along with its competitors' market caps and Gross Profit data, can be viewed below:

* 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. Note that "N/A" values will not show up in the chart.

RONA's Gross Profit Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, RONA's Gross Profit distribution charts can be found below:

* The bar in red indicates where RONA's Gross Profit falls into.

RONA Gross Profit Calculation

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

RONA's Gross Profit for the fiscal year that ended in Dec. 2015 is calculated as

Gross Profit (A: Dec. 2015 )	=	Revenue	-	Cost of Goods Sold
	=	4233.255	-	3089.45
	=	1,143.81

RONA's Gross Profit for the quarter that ended in Mar. 2016 is calculated as

Gross Profit (Q: Mar. 2016 )	=	Revenue	-	Cost of Goods Sold
	=	819.216	-	576.205
	=	243.01

Gross Profit for the trailing twelve months (TTM) ended in Mar. 2016 adds up the quarterly data reported by the company within the most recent 12 months, which was C$1,176.96 Mil.

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

RONA's Gross Margin % for the quarter that ended in Mar. 2016 is calculated as

Gross Margin % (Q: Mar. 2016 )	=	Gross Profit (Q: Mar. 2016 )	/	Revenue (Q: Mar. 2016 )
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	243.01	/	819.216
	=	29.66 %

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.

RONA (TSX:RON.PR.B.PFD) Gross Profit 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

RONA had a gross margin of 29.66% for the quarter that ended in Mar. 2016 => Competition eroding margins

RONA Gross Profit Related Terms

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RONA (TSX:RON.PR.B.PFD) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » RONA Inc (TSX:RON.PR.B.PFD) » Definitions » Gross Profit

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Traded in Other Exchanges

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Address

Website

http://www.rona.ca

Rona Inc founded on October 6, 1939, is engaged in the distribution and retail of hardware, home improvement and gardening products in Canada. The Company has three segments of activity in hardware, renovation and construction marketplace: distribution, retail and commercial and professional. The Company provides automotive products, building materials and accessories, decoration products, gutter and accessories, hand tools, hardware products, horticulture products, kitchen and bathroom products, lighting and electrical products, paint products, plumbing products, power tools, pre-seasonal products, storage and house ware products, tiling products, winter season products, and gift cards, as well as heating, ventilation, and air conditioning (HVAC) products. The Company also provides construction plans. The Company's model comprises of various store formats that address specific markets or consumer sectors and three ownership formulas.

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