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Harbinger Group, Inc. (NYSE:HRG)
Gross Profit
$2,938 Mil (TTM As of Dec. 2013)

Harbinger Group, Inc.'s gross profit for the three months ended in Dec. 2013 was $775 Mil. Harbinger Group, Inc.'s gross profit for the trailing twelve months (TTM) ended in Dec. 2013 was $2,938 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Harbinger Group, Inc.'s gross profit for the three months ended in Dec. 2013 was $775 Mil. Harbinger Group, Inc.'s revenue for the three months ended in Dec. 2013 was $1,510 Mil. Therefore, Harbinger Group, Inc.'s Gross Margin for the quarter that ended in Dec. 2013 was 51.29%.

Harbinger Group, Inc. had a gross margin of 51.29% for the quarter that ended in Dec. 2013 => Durable competitive advantage

During the past 13 years, the highest Gross Margin of Harbinger Group, Inc. was 52.31%. The lowest was -12.51%. And the median was 24.61%.


Definition

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

Harbinger Group, Inc.'s Gross Profit for the fiscal year that ended in Sep. 2013 is calculated as

Gross Profit (A: Sep. 2013 )=Revenue - Cost of Goods Sold
=5543.4 - 2739.3
=2,804

Harbinger Group, Inc.'s Gross Profit for the quarter that ended in Dec. 2013 is calculated as

Gross Profit (Q: Dec. 2013 )=Revenue - Cost of Goods Sold
=1510 - 735.5
=775

Harbinger Group, Inc. Gross Profit for the trailing twelve months (TTM) ended in Dec. 2013 was 738.2 (Mar. 2013 ) + 685.5 (Jun. 2013 ) + 740.2 (Sep. 2013 ) + 774.5 (Dec. 2013 ) = $2,938 Mil.

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

Harbinger Group, Inc.'s Gross Margin for the quarter that ended in Dec. 2013 is calculated as

Gross Margin (Q: Dec. 2013 )=Gross Profit (Q: Dec. 2013 ) / Revenue (Q: Dec. 2013 )
=(Revenue - Cost of Goods Sold) / Revenue
=775 / 1510
=51.29 %

* 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

Harbinger Group, Inc. had a gross margin of 51.29% for the quarter that ended in Dec. 2013 => 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.

Harbinger Group, Inc. Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Sep11Sep12Sep13
Gross_Profit 00000001,4202,3442,804

Harbinger Group, Inc. Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
Gross_Profit 342601619479644640738686740775
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