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NTT DOCOMO Inc (NYSE:DCM)
Gross Profit
\$22,321 Mil (TTM As of Sep. 2016)

NTT DOCOMO Inc's gross profit for the three months ended in Sep. 2016 was \$6,315 Mil. NTT DOCOMO Inc's gross profit for the trailing twelve months (TTM) ended in Sep. 2016 was \$22,321 Mil.

Gross Margin is calculated as gross profit divided by its revenue. NTT DOCOMO Inc's gross profit for the three months ended in Sep. 2016 was \$6,315 Mil. NTT DOCOMO Inc's revenue for the three months ended in Sep. 2016 was \$11,590 Mil. Therefore, NTT DOCOMO Inc's Gross Margin for the quarter that ended in Sep. 2016 was 54.49%.

NTT DOCOMO Inc had a gross margin of 54.49% for the quarter that ended in Sep. 2016 => Durable competitive advantage

During the past 13 years, the highest Gross Margin of NTT DOCOMO Inc was 63.09%. The lowest was 52.95%. And the median was 59.52%.

Warning Sign:

NTT DOCOMO Inc gross margin has been in long term decline. The average rate of decline per year is -3.8%.

Definition

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

NTT DOCOMO Inc's Gross Profit for the fiscal year that ended in Mar. 2016 is calculated as

 Gross Profit (A: Mar. 2016 ) = Revenue - Cost of Goods Sold = 40086.9197931 - 18861.1700701 = 21,226

NTT DOCOMO Inc's Gross Profit for the quarter that ended in Sep. 2016 is calculated as

 Gross Profit (Q: Sep. 2016 ) = Revenue - Cost of Goods Sold = 11589.9406883 - 5274.90978471 = 6,315

NTT DOCOMO Inc Gross Profit for the trailing twelve months (TTM) ended in Sep. 2016 was 5100.25897151 (Dec. 2015 ) + 4743.45998511 (Mar. 2016 ) + 6162.39633454 (Jun. 2016 ) + 6315.03090359 (Sep. 2016 ) = \$22,321 Mil.

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

NTT DOCOMO Inc's Gross Margin for the quarter that ended in Sep. 2016 is calculated as

 Gross Margin (Q: Sep. 2016 ) = Gross Profit (Q: Sep. 2016 ) / Revenue (Q: Sep. 2016 ) = (Revenue - Cost of Goods Sold) / Revenue = 6,315 / 11589.9406883 = 54.49 %

* 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

NTT DOCOMO Inc had a gross margin of 54.49% for the quarter that ended in Sep. 2016 => Durable competitive advantage

Related Terms

Historical Data

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

NTT DOCOMO Inc Annual Data

 Mar07 Mar08 Mar09 Mar10 Mar11 Mar12 Mar13 Mar14 Mar15 Mar16 Gross_Profit 23,952 27,298 28,079 29,601 32,640 32,147 28,480 25,566 19,692 21,226

NTT DOCOMO Inc Quarterly Data

 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Gross_Profit 6,197 5,614 5,192 4,284 4,950 5,232 5,100 4,743 6,162 6,315
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