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Walt Disney Co (NYSE:DIS)
Gross Profit
$25,639 Mil (TTM As of Sep. 2016)

Walt Disney Co's gross profit for the three months ended in Sep. 2016 was $5,837 Mil. Walt Disney Co's gross profit for the trailing twelve months (TTM) ended in Sep. 2016 was $25,639 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Walt Disney Co's gross profit for the three months ended in Sep. 2016 was $5,837 Mil. Walt Disney Co's revenue for the three months ended in Sep. 2016 was $13,142 Mil. Therefore, Walt Disney Co's Gross Margin for the quarter that ended in Sep. 2016 was 44.41%.

Walt Disney Co had a gross margin of 44.41% for the quarter that ended in Sep. 2016 => Durable competitive advantage

During the past 13 years, the highest Gross Margin of Walt Disney Co was 46.09%. The lowest was 15.76%. And the median was 32.05%.


Definition

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

Walt Disney Co's Gross Profit for the fiscal year that ended in Sep. 2016 is calculated as

Gross Profit (A: Sep. 2016 )=Revenue - Cost of Goods Sold
=55632 - 29993
=25,639

Walt Disney Co's Gross Profit for the quarter that ended in Sep. 2016 is calculated as

Gross Profit (Q: Sep. 2016 )=Revenue - Cost of Goods Sold
=13142 - 7305
=5,837

Walt Disney Co Gross Profit for the trailing twelve months (TTM) ended in Sep. 2016 was 6621 (Dec. 2015 ) + 6105 (Mar. 2016 ) + 7076 (Jun. 2016 ) + 5837 (Sep. 2016 ) = $25,639 Mil.

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

Walt Disney Co'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
=5,837 / 13142
=44.41 %

* 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

Walt Disney Co had a gross margin of 44.41% for the quarter that ended in Sep. 2016 => 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 local exchange's currency.

Walt Disney Co Annual Data

Sep07Sep08Sep09Sep10Sep11Sep12Sep13Sep14Sep15Sep16
Gross_Profit 6,7817,4435,6976,7267,78118,81020,00722,39324,10125,639

Walt Disney Co Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
Gross_Profit 6,1025,3705,7355,7716,4386,1576,6216,1057,0765,837
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