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Hasbro Inc (NAS:HAS)
Gross Profit
\$2,607 Mil (TTM As of Sep. 2016)

Hasbro Inc's gross profit for the three months ended in Sep. 2016 was \$886 Mil. Hasbro Inc's gross profit for the trailing twelve months (TTM) ended in Sep. 2016 was \$2,607 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Hasbro Inc's gross profit for the three months ended in Sep. 2016 was \$886 Mil. Hasbro Inc's revenue for the three months ended in Sep. 2016 was \$1,680 Mil. Therefore, Hasbro Inc's Gross Margin for the quarter that ended in Sep. 2016 was 52.77%.

Hasbro Inc had a gross margin of 52.77% for the quarter that ended in Sep. 2016 => Durable competitive advantage

During the past 13 years, the highest Gross Margin of Hasbro Inc was 58.92%. The lowest was 49.24%. And the median was 52.44%.

Definition

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

Hasbro Inc's Gross Profit for the fiscal year that ended in Dec. 2015 is calculated as

 Gross Profit (A: Dec. 2015 ) = Revenue - Cost of Goods Sold = 4447.509 - 2056.278 = 2,391

Hasbro 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 = 1679.757 - 793.28 = 886

Hasbro Inc Gross Profit for the trailing twelve months (TTM) ended in Sep. 2016 was 761.467 (Dec. 2015 ) + 470.971 (Mar. 2016 ) + 487.861 (Jun. 2016 ) + 886.477 (Sep. 2016 ) = \$2,607 Mil.

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

Hasbro 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 = 886 / 1679.757 = 52.77 %

* 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

Hasbro Inc had a gross margin of 52.77% 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.

Hasbro Inc Annual Data

 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Gross_Profit 1,848 2,261 2,329 2,061 2,064 2,110 2,115 2,070 2,274 2,391

Hasbro Inc Quarterly Data

 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Gross_Profit 438 773 691 407 445 778 761 471 488 886
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