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NTT DoCoMo Inc (NYSE:DCM)
Gross Profit
$20,040 Mil (TTM As of Jun. 2015)

NTT DoCoMo Inc's gross profit for the three months ended in Jun. 2015 was $4,950 Mil. NTT DoCoMo Inc's gross profit for the trailing twelve months (TTM) ended in Jun. 2015 was $20,040 Mil.

Gross Margin is calculated as gross profit divided by its revenue. NTT DoCoMo Inc's gross profit for the three months ended in Jun. 2015 was $4,950 Mil. NTT DoCoMo Inc's revenue for the three months ended in Jun. 2015 was $8,704 Mil. Therefore, NTT DoCoMo Inc's Gross Margin for the quarter that ended in Jun. 2015 was 56.87%.

NTT DoCoMo Inc had a gross margin of 56.87% for the quarter that ended in Jun. 2015 => Durable competitive advantage

During the past 13 years, the highest Gross Margin of NTT DoCoMo Inc was 68.81%. The lowest was 54.09%. And the median was 62.15%.

Warning Sign:

NTT DoCoMo Inc gross margin has been in long term decline. The average rate of decline per year is -2.8%.


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. 2015 is calculated as

Gross Profit (A: Mar. 2015 )=Revenue - Cost of Goods Sold
=36408.6150115 - 16716.5111363
=19,692

NTT DoCoMo Inc's Gross Profit for the quarter that ended in Jun. 2015 is calculated as

Gross Profit (Q: Jun. 2015 )=Revenue - Cost of Goods Sold
=8704.13987872 - 3753.96262163
=4,950

NTT DoCoMo Inc Gross Profit for the trailing twelve months (TTM) ended in Jun. 2015 was 5613.69392985 (Sep. 2014 ) + 5191.6348274 (Dec. 2014 ) + 4284.43159779 (Mar. 2015 ) + 4950.1772571 (Jun. 2015 ) = $20,040 Mil.

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

NTT DoCoMo Inc's Gross Margin for the quarter that ended in Jun. 2015 is calculated as

Gross Margin (Q: Jun. 2015 )=Gross Profit (Q: Jun. 2015 ) / Revenue (Q: Jun. 2015 )
=(Revenue - Cost of Goods Sold) / Revenue
=4,950 / 8704.13987872
=56.87 %

* 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

NTT DoCoMo Inc had a gross margin of 56.87% for the quarter that ended in Jun. 2015 => Durable 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.

NTT DoCoMo Inc Annual Data

Mar06Mar07Mar08Mar09Mar10Mar11Mar12Mar13Mar14Mar15
Gross_Profit 24,77823,95227,29828,07929,60132,64032,14728,48025,56619,692

NTT DoCoMo Inc Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
Gross_Profit 6,8717,0486,7646,1636,0826,1975,6145,1924,2844,950
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