GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Devices & Instruments » Avitar Inc (OTCPK:AVTI) » Definitions » Gross Profit

Avitar (Avitar) Gross Profit : $0.62 Mil (TTM As of Dec. 2007)


View and export this data going back to 1992. Start your Free Trial

What is Avitar Gross Profit?

Avitar's gross profit for the three months ended in Dec. 2007 was $0.07 Mil. Avitar's gross profit for the trailing twelve months (TTM) ended in Dec. 2007 was $0.62 Mil.

Gross Margin % is calculated as gross profit divided by its revenue. Avitar's gross profit for the three months ended in Dec. 2007 was $0.07 Mil. Avitar's Revenue for the three months ended in Dec. 2007 was $0.51 Mil. Therefore, Avitar's Gross Margin % for the quarter that ended in Dec. 2007 was 13.27%.

Avitar had a gross margin of 13.27% for the quarter that ended in Dec. 2007 => No sustainable competitive advantage


Avitar Gross Profit Historical Data

The historical data trend for Avitar'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.

* Premium members only.

Avitar Gross Profit Chart

Avitar Annual Data
Trend Sep98 Sep99 Sep00 Sep01 Sep02 Sep03 Sep04 Sep05 Sep06 Sep07
Gross Profit
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.17 1.34 1.33 1.38 0.84

Avitar Quarterly Data
Mar03 Jun03 Sep03 Dec03 Mar04 Jun04 Sep04 Dec04 Mar05 Jun05 Sep05 Dec05 Mar06 Jun06 Sep06 Dec06 Mar07 Jun07 Sep07 Dec07
Gross Profit Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.28 0.14 0.22 0.20 0.07

Competitive Comparison of Avitar's Gross Profit

For the Medical Devices subindustry, Avitar'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.


Avitar's Gross Profit Distribution in the Medical Devices & Instruments Industry

For the Medical Devices & Instruments industry and Healthcare sector, Avitar's Gross Profit distribution charts can be found below:

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



Avitar Gross Profit Calculation

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

Avitar's Gross Profit for the fiscal year that ended in Sep. 2007 is calculated as

Gross Profit (A: Sep. 2007 )=Revenue - Cost of Goods Sold
=3.106 - 2.269
=0.84

Avitar's Gross Profit for the quarter that ended in Dec. 2007 is calculated as

Gross Profit (Q: Dec. 2007 )=Revenue - Cost of Goods Sold
=0.505 - 0.438
=0.07

Gross Profit for the trailing twelve months (TTM) ended in Dec. 2007 adds up the quarterly data reported by the company within the most recent 12 months, which was $0.62 Mil.

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

Avitar's Gross Margin % for the quarter that ended in Dec. 2007 is calculated as

Gross Margin % (Q: Dec. 2007 )=Gross Profit (Q: Dec. 2007 ) / Revenue (Q: Dec. 2007 )
=(Revenue - Cost of Goods Sold) / Revenue
=0.07 / 0.505
=13.27 %

* 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.

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.


Avitar  (OTCPK:AVTI) 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

Avitar had a gross margin of 13.27% for the quarter that ended in Dec. 2007 => No sustainable competitive advantage


Avitar Gross Profit Related Terms

Thank you for viewing the detailed overview of Avitar's Gross Profit provided by GuruFocus.com. Please click on the following links to see related term pages.


Avitar (Avitar) Business Description

Traded in Other Exchanges
N/A
Address
5005 Elbow Drive SW, Suite 207, Calgary, AB, CAN, T2S 1T9
Website
Avitar Inc, through its subsidiary Avitar Technologies, develops, manufactures, and markets products for oral fluid diagnostics, disease and clinical testing, and wound treating.

Avitar (Avitar) Headlines