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Gannett Co Inc (NYSE:GCI)
Gross Profit
$2,652 Mil (TTM As of Sep. 2014)

Gannett Co Inc's gross profit for the three months ended in Sep. 2014 was $686 Mil. Gannett Co Inc's gross profit for the trailing twelve months (TTM) ended in Sep. 2014 was $2,652 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Gannett Co Inc's gross profit for the three months ended in Sep. 2014 was $686 Mil. Gannett Co Inc's revenue for the three months ended in Sep. 2014 was $1,443 Mil. Therefore, Gannett Co Inc's Gross Margin for the quarter that ended in Sep. 2014 was 47.52%.

Gannett Co Inc had a gross margin of 47.52% for the quarter that ended in Sep. 2014 => Durable competitive advantage

During the past 13 years, the highest Gross Margin of Gannett Co Inc was 51.72%. The lowest was 41.03%. And the median was 46.27%.


Definition

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

Gannett Co Inc's Gross Profit for the fiscal year that ended in Dec. 2012 is calculated as

Gross Profit (A: Dec. 2012 )=Revenue - Cost of Goods Sold
=5353.197 - 2943.847
=2,409

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

Gross Profit (Q: Sep. 2014 )=Revenue - Cost of Goods Sold
=1443.137 - 757.301
=686

Gannett Co Inc Gross Profit for the trailing twelve months (TTM) ended in Sep. 2014 was 645.551 (Dec. 2013 ) + 636.534 (Mar. 2014 ) + 684.377 (Jun. 2014 ) + 685.836 (Sep. 2014 ) = $2,652 Mil.

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

Gannett Co Inc'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
=686 / 1443.137
=47.52 %

* 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

Gannett Co Inc had a gross margin of 47.52% for the quarter that ended in Sep. 2014 => 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.

Gannett Co Inc Annual Data

Dec03Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12
Gross_Profit 3,2063,5073,4403,4773,2752,7242,2792,4582,2792,409

Gannett Co Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
Gross_Profit 586588739518576540646637684686
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