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JPMorgan Chase & Co (NYSE:JPM)
Gross Profit
$0 Mil (TTM As of Dec. 2013)

JPMorgan Chase & Co's gross profit for the three months ended in Dec. 2013 was $0 Mil. JPMorgan Chase & Co's gross profit for the trailing twelve months (TTM) ended in Dec. 2013 was $0 Mil.

Gross Margin is calculated as gross profit divided by its revenue. JPMorgan Chase & Co's gross profit for the three months ended in Dec. 2013 was $0 Mil. JPMorgan Chase & Co's revenue for the three months ended in Dec. 2013 was $23,156 Mil. Therefore, JPMorgan Chase & Co's Gross Margin for the quarter that ended in Dec. 2013 was 100.00%.

JPMorgan Chase & Co had a gross margin of 100.00% for the quarter that ended in Dec. 2013 => Durable competitive advantage


Definition

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

JPMorgan Chase & Co's Gross Profit for the fiscal year that ended in Dec. 2013 is calculated as

Gross Profit (A: Dec. 2013 )=Revenue - Cost of Goods Sold
=96606 - 0
=96,606

JPMorgan Chase & Co's Gross Profit for the quarter that ended in Dec. 2013 is calculated as

Gross Profit (Q: Dec. 2013 )=Revenue - Cost of Goods Sold
=23156 - 0
=23,156

JPMorgan Chase & Co Gross Profit for the trailing twelve months (TTM) ended in Dec. 2013 was 0 (Mar. 2013 ) + 0 (Jun. 2013 ) + 0 (Sep. 2013 ) + 0 (Dec. 2013 ) = $0 Mil.

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

JPMorgan Chase & Co'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
=23,156 / 23156
=100.00 %

* 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

JPMorgan Chase & Co had a gross margin of 100.00% 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.

JPMorgan Chase & Co Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Gross_Profit 0000000000

JPMorgan Chase & Co Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
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