Switch to:
IAC/InterActiveCorp (NAS:IACI)
Gross Profit
\$2,226 Mil (TTM As of Dec. 2014)

IAC/InterActiveCorp's gross profit for the three months ended in Dec. 2014 was \$594 Mil. IAC/InterActiveCorp's gross profit for the trailing twelve months (TTM) ended in Dec. 2014 was \$2,226 Mil.

Gross Margin is calculated as gross profit divided by its revenue. IAC/InterActiveCorp's gross profit for the three months ended in Dec. 2014 was \$594 Mil. IAC/InterActiveCorp's revenue for the three months ended in Dec. 2014 was \$831 Mil. Therefore, IAC/InterActiveCorp's Gross Margin for the quarter that ended in Dec. 2014 was 71.51%.

IAC/InterActiveCorp had a gross margin of 71.51% for the quarter that ended in Dec. 2014 => Durable competitive advantage

During the past 13 years, the highest Gross Margin of IAC/InterActiveCorp was 98.75%. The lowest was 5.84%. And the median was 59.64%.

Definition

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

IAC/InterActiveCorp's Gross Profit for the fiscal year that ended in Dec. 2014 is calculated as

 Gross Profit (A: Dec. 2014 ) = Revenue - Cost of Goods Sold = 3109.547 - 883.176 = 2,226

IAC/InterActiveCorp's Gross Profit for the quarter that ended in Dec. 2014 is calculated as

 Gross Profit (Q: Dec. 2014 ) = Revenue - Cost of Goods Sold = 830.754 - 236.69 = 594

IAC/InterActiveCorp Gross Profit for the trailing twelve months (TTM) ended in Dec. 2014 was 531.053 (Mar. 2014 ) + 545.215 (Jun. 2014 ) + 556.039 (Sep. 2014 ) + 594.064 (Dec. 2014 ) = \$2,226 Mil.

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

IAC/InterActiveCorp's Gross Margin for the quarter that ended in Dec. 2014 is calculated as

 Gross Margin (Q: Dec. 2014 ) = Gross Profit (Q: Dec. 2014 ) / Revenue (Q: Dec. 2014 ) = (Revenue - Cost of Goods Sold) / Revenue = 594 / 830.754 = 71.51 %

* 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

IAC/InterActiveCorp had a gross margin of 71.51% for the quarter that ended in Dec. 2014 => Durable competitive advantage

Related Terms

Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

IAC/InterActiveCorp Annual Data

 Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Gross_Profit 2,417 632 778 968 917 1,043 1,298 1,810 2,019 2,226

IAC/InterActiveCorp Quarterly Data

 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Gross_Profit 452 497 486 527 508 498 531 545 556 594
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to \$400 per referral. ( Learn More)