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JC Penney Co Inc (NYSE:JCP)
Gross Profit
$2,947 Mil (TTM As of Dec. 2014)

JC Penney Co Inc's gross profit for the three months ended in Dec. 2014 was $0 Mil. JC Penney Co Inc's gross profit for the trailing twelve months (TTM) ended in Dec. 2014 was $2,947 Mil.

Gross Margin is calculated as gross profit divided by its revenue. JC Penney Co Inc's gross profit for the three months ended in Dec. 2014 was $0 Mil. JC Penney Co Inc's revenue for the three months ended in Dec. 2014 was $0 Mil. Therefore, JC Penney Co Inc's Gross Margin for the quarter that ended in Dec. 2014 was %.

JC Penney Co Inc had a gross margin of % for the quarter that ended in Dec. 2014 => No sustainable competitive advantage

During the past 13 years, the highest Gross Margin of JC Penney Co Inc was 39.36%. The lowest was 27.68%. And the median was 35.92%.

Warning Sign:

JC Penney Co Inc gross margin has been in long term decline. The average rate of decline per year is -5.5%.


Definition

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

JC Penney Co Inc's Gross Profit for the fiscal year that ended in Jan. 2014 is calculated as

Gross Profit (A: Jan. 2014 )=Revenue - Cost of Goods Sold
=11859 - 8367
=3,492

JC Penney Co Inc's Gross Profit for the quarter that ended in Dec. 2014 is calculated as

Gross Profit (Q: Dec. 2014 )=Revenue - Cost of Goods Sold
=0 - 0
=0

JC Penney Co Inc Gross Profit for the trailing twelve months (TTM) ended in Dec. 2014 was 926 (Apr. 2014 ) + 1008 (Jul. 2014 ) + 1013 (Oct. 2014 ) + 0 (Dec. 2014 ) = $2,947 Mil.

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

JC Penney Co Inc'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
=0 / 0
= %

* 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

JC Penney Co Inc had a gross margin of % for the quarter that ended in Dec. 2014 => No sustainable 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.

JC Penney Co Inc Annual Data

Jan06Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14Jan15
Gross_Profit 7,3767,8257,6716,9156,9106,9606,2184,0663,4924,261

JC Penney Co Inc Quarterly Data

Apr13Jul13Oct13Dec13Jan14Apr14Jul14Oct14Dec14Jan15
Gross_Profit 81278781901,0749261,0081,01301,314
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