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Macerich Co (NYSE:MAC)
Gross Profit
$628 Mil (TTM As of Sep. 2014)

Macerich Co's gross profit for the three months ended in Sep. 2014 was $157 Mil. Macerich Co's gross profit for the trailing twelve months (TTM) ended in Sep. 2014 was $628 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Macerich Co's gross profit for the three months ended in Sep. 2014 was $157 Mil. Macerich Co's revenue for the three months ended in Sep. 2014 was $263 Mil. Therefore, Macerich Co's Gross Margin for the quarter that ended in Sep. 2014 was 59.44%.

Macerich Co had a gross margin of 59.44% for the quarter that ended in Sep. 2014 => Durable competitive advantage

During the past 13 years, the highest Gross Margin of Macerich Co was 59.41%. The lowest was 55.85%. And the median was 58.11%.


Definition

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

Macerich 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
=1029.475 - 423.256
=606

Macerich Co's Gross Profit for the quarter that ended in Sep. 2014 is calculated as

Gross Profit (Q: Sep. 2014 )=Revenue - Cost of Goods Sold
=263.492 - 106.86
=157

Macerich Co Gross Profit for the trailing twelve months (TTM) ended in Sep. 2014 was 168.522 (Dec. 2013 ) + 151.364 (Mar. 2014 ) + 151.576 (Jun. 2014 ) + 156.632 (Sep. 2014 ) = $628 Mil.

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

Macerich Co's Gross Margin for the quarter that ended in Sep. 2014 is calculated as

Gross Margin (Q: Sep. 2014 )=Gross Profit (Q: Sep. 2014 ) / Revenue (Q: Sep. 2014 )
=(Revenue - Cost of Goods Sold) / Revenue
=157 / 263.492
=59.44 %

* 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

Macerich Co had a gross margin of 59.44% for the quarter that ended in Sep. 2014 => 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.

Macerich Co Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Gross_Profit 000484522468397434460606

Macerich Co Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
Gross_Profit 110120119142144152169151152157
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