GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Diagnostics & Research » Covance Inc (FRA:CVD) » Definitions » Gross Profit

Covance (FRA:CVD) Gross Profit : €566 Mil (TTM As of Sep. 2014)


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

What is Covance Gross Profit?

Covance's gross profit for the three months ended in Sep. 2014 was €152 Mil. Covance's gross profit for the trailing twelve months (TTM) ended in Sep. 2014 was €566 Mil.

Gross Margin % is calculated as gross profit divided by its revenue. Covance's gross profit for the three months ended in Sep. 2014 was €152 Mil. Covance's Revenue for the three months ended in Sep. 2014 was €521 Mil. Therefore, Covance's Gross Margin % for the quarter that ended in Sep. 2014 was 29.22%.

Covance had a gross margin of 29.22% for the quarter that ended in Sep. 2014 => Competition eroding margins


Covance Gross Profit Historical Data

The historical data trend for Covance'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.

Covance Gross Profit Chart

Covance Annual Data
Trend Dec04 Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13
Gross Profit
Get a 7-Day Free Trial Premium Member Only Premium Member Only 470.24 521.62 584.74 465.12 518.40

Covance Quarterly Data
Dec09 Mar10 Jun10 Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14
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 136.04 135.95 135.56 141.90 152.15

Competitive Comparison of Covance's Gross Profit

For the Diagnostics & Research subindustry, Covance'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.


Covance's Gross Profit Distribution in the Medical Diagnostics & Research Industry

For the Medical Diagnostics & Research industry and Healthcare sector, Covance's Gross Profit distribution charts can be found below:

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



Covance Gross Profit Calculation

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

Covance's Gross Profit for the fiscal year that ended in Dec. 2013 is calculated as

Gross Profit (A: Dec. 2013 )=Revenue - Cost of Goods Sold
=1894.445 - 1376.043
=518

Covance's Gross Profit for the quarter that ended in Sep. 2014 is calculated as

Gross Profit (Q: Sep. 2014 )=Revenue - Cost of Goods Sold
=520.694 - 368.544
=152

Gross Profit for the trailing twelve months (TTM) ended in Sep. 2014 adds up the quarterly data reported by the company within the most recent 12 months, which was €566 Mil.

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

Covance's Gross Margin % for the quarter that ended in Sep. 2014 is calculated as

Gross Margin % (Q: Sep. 2014 )=Gross Profit (Q: Sep. 2014 ) / Revenue (Q: Sep. 2014 )
=(Revenue - Cost of Goods Sold) / Revenue
=152 / 520.694
=29.22 %

* 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.


Covance  (FRA:CVD) 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

Covance had a gross margin of 29.22% for the quarter that ended in Sep. 2014 => Competition eroding margins


Covance Gross Profit Related Terms

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


Covance (FRA:CVD) Business Description

Traded in Other Exchanges
N/A
Address
Covance, Inc is a Delaware Corporation, founded in 1987. The Company is a drug development services company providing early-stage and late-stage product development services mainly to the pharmaceutical, biotechnology and medical device industries. It also provides laboratory testing services to the chemical, agrochemical and food industries. Its two reportable segments are early development services, which include discovery support services, preclinical services and clinical pharmacology services; and late-stage development services, which include central laboratory, Phase II-IV clinical development, and market access services. The Company's preclinical services include toxicology services, pharmaceutical chemistry and related services. The Company's preclinical area has been a source of innovation by introducing new technologies for client access to data such as StudyTracker, electronic animal identification, multimedia study reports and animal and test tube measures of induced cell proliferation or reproduction. The Company's preclinical toxicology services include in vivo toxicology studies, which are studies of the effects of drugs in animals, genetic toxicology studies, which include studies of the effects of drugs on chromosomes, as well as on genetically modified mice and other specialized toxicology services. In its pharmaceutical chemistry services, it determines the metabolic profile and bioavailability of drug candidates. It also provides laboratory testing services to the chemical, agricultural chemical and food industries. The Company offers services to agricultural chemical manufacturers to determine the potential risk to humans, animals and the environment from plant protection products such as pesticides. In its nutritional chemistry services, the Company offers a range of services to the food, nutriceutical and animal feed industries, including nutritional analysis and equivalency, nutritional content fact labels, microbiological and chemical contaminant safety analysis, pesticide screening and stability testing. It provides custom polyclonal and monoclonal antibody services for research purposes and purpose-bred animals for biomedical research. The Company provides optimization and translational services including custom immunology and monoclonal antibody services, metabolism studies and pharmacokinetic screening as well as non-GLP toxicology, in vivo pharmacology, imaging services and biomarker services. The Company's bioanalytical testing services helps determine the appropriate dose and frequency of drug application from late discovery evaluation through Phase III clinical testing on a full-scale, globally integrated basis. The Company provides clinical pharmacology services, including first-in-human trials, of new pharmaceuticals at its seven clinics located throughout the United States and its one clinic in Leeds, United Kingdom. The Company offers reimbursement and healthcare economics consulting services

Covance (FRA:CVD) Headlines

No Headlines