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Coca-Cola Femsa SAB de CV (NYSE:KOF)
Gross Profit
$4,207 Mil (TTM As of Jun. 2016)

Coca-Cola Femsa SAB de CV's gross profit for the three months ended in Jun. 2016 was $989 Mil. Coca-Cola Femsa SAB de CV's gross profit for the trailing twelve months (TTM) ended in Jun. 2016 was $4,207 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Coca-Cola Femsa SAB de CV's gross profit for the three months ended in Jun. 2016 was $989 Mil. Coca-Cola Femsa SAB de CV's revenue for the three months ended in Jun. 2016 was $2,141 Mil. Therefore, Coca-Cola Femsa SAB de CV's Gross Margin for the quarter that ended in Jun. 2016 was 46.18%.

Coca-Cola Femsa SAB de CV had a gross margin of 46.18% for the quarter that ended in Jun. 2016 => Durable competitive advantage

During the past 13 years, the highest Gross Margin of Coca-Cola Femsa SAB de CV was 48.19%. The lowest was 45.89%. And the median was 46.64%.


Definition

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

Coca-Cola Femsa SAB de CV'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
=8925.80962647 - 4706.02708909
=4,220

Coca-Cola Femsa SAB de CV's Gross Profit for the quarter that ended in Jun. 2016 is calculated as

Gross Profit (Q: Jun. 2016 )=Revenue - Cost of Goods Sold
=2141.0650913 - 1152.31212943
=989

Coca-Cola Femsa SAB de CV Gross Profit for the trailing twelve months (TTM) ended in Jun. 2016 was 1065.04658911 (Sep. 2015 ) + 1193.52533158 (Dec. 2015 ) + 959.427803271 (Mar. 2016 ) + 988.752961863 (Jun. 2016 ) = $4,207 Mil.

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

Coca-Cola Femsa SAB de CV's Gross Margin for the quarter that ended in Jun. 2016 is calculated as

Gross Margin (Q: Jun. 2016 )=Gross Profit (Q: Jun. 2016 ) / Revenue (Q: Jun. 2016 )
=(Revenue - Cost of Goods Sold) / Revenue
=989 / 2141.0650913
=46.18 %

* 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

Coca-Cola Femsa SAB de CV had a gross margin of 46.18% for the quarter that ended in Jun. 2016 => 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.

Coca-Cola Femsa SAB de CV Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
Gross_Profit 2,5363,0762,9133,7183,8684,1545,3355,6064,7094,220

Coca-Cola Femsa SAB de CV Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
Gross_Profit 1,3571,5041,4807401,0341,1301,0651,194959989
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