Switch to:
Computer Sciences Corp (NYSE:CSC)
Gross Profit
$2,639 Mil (TTM As of Mar. 2015)

Computer Sciences Corp's gross profit for the three months ended in Mar. 2015 was $476 Mil. Computer Sciences Corp's gross profit for the trailing twelve months (TTM) ended in Mar. 2015 was $2,639 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Computer Sciences Corp's gross profit for the three months ended in Mar. 2015 was $476 Mil. Computer Sciences Corp's revenue for the three months ended in Mar. 2015 was $2,909 Mil. Therefore, Computer Sciences Corp's Gross Margin for the quarter that ended in Mar. 2015 was 16.36%.

Computer Sciences Corp had a gross margin of 16.36% for the quarter that ended in Mar. 2015 => No sustainable competitive advantage

During the past 13 years, the highest Gross Margin of Computer Sciences Corp was 26.40%. The lowest was 6.07%. And the median was 20.72%.


Definition

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

Computer Sciences Corp's Gross Profit for the fiscal year that ended in Mar. 2015 is calculated as

Gross Profit (A: Mar. 2015 )=Revenue - Cost of Goods Sold
=12173 - 9534
=2,639

Computer Sciences Corp's Gross Profit for the quarter that ended in Mar. 2015 is calculated as

Gross Profit (Q: Mar. 2015 )=Revenue - Cost of Goods Sold
=2909 - 2433
=476

Computer Sciences Corp Gross Profit for the trailing twelve months (TTM) ended in Mar. 2015 was 873 (Jun. 2014 ) + 873 (Sep. 2014 ) + 417 (Dec. 2014 ) + 476 (Mar. 2015 ) = $2,639 Mil.

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

Computer Sciences Corp's Gross Margin for the quarter that ended in Mar. 2015 is calculated as

Gross Margin (Q: Mar. 2015 )=Gross Profit (Q: Mar. 2015 ) / Revenue (Q: Mar. 2015 )
=(Revenue - Cost of Goods Sold) / Revenue
=476 / 2909
=16.36 %

* 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

Computer Sciences Corp had a gross margin of 16.36% for the quarter that ended in Mar. 2015 => No sustainable competitive advantage


Related Terms

Cost of Goods Sold, Gross Margin, Revenue


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Computer Sciences Corp Annual Data

Mar06Mar07Mar08Mar09Mar10Mar11Mar12Mar13Mar14Mar15
Gross_Profit 2,8963,0393,3483,4793,3313,1179633,1423,4312,639

Computer Sciences Corp Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
Gross_Profit 786849794849866918873873417476
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GuruFocus Premium Plus Membership

FEEDBACK