Switch to:
SunPower Corp (NAS:SPWR)
Gross Profit
$242 Mil (TTM As of Sep. 2016)

SunPower Corp's gross profit for the three months ended in Sep. 2016 was $129 Mil. SunPower Corp's gross profit for the trailing twelve months (TTM) ended in Sep. 2016 was $242 Mil.

Gross Margin is calculated as gross profit divided by its revenue. SunPower Corp's gross profit for the three months ended in Sep. 2016 was $129 Mil. SunPower Corp's revenue for the three months ended in Sep. 2016 was $729 Mil. Therefore, SunPower Corp's Gross Margin for the quarter that ended in Sep. 2016 was 17.72%.

SunPower Corp had a gross margin of 17.72% for the quarter that ended in Sep. 2016 => No sustainable competitive advantage

During the past 13 years, the highest Gross Margin of SunPower Corp was 24.32%. The lowest was 9.53%. And the median was 19.34%.


Definition

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

SunPower Corp'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
=1576.473 - 1331.827
=245

SunPower Corp's Gross Profit for the quarter that ended in Sep. 2016 is calculated as

Gross Profit (Q: Sep. 2016 )=Revenue - Cost of Goods Sold
=729.346 - 600.138
=129

SunPower Corp Gross Profit for the trailing twelve months (TTM) ended in Sep. 2016 was 20.303 (Dec. 2015 ) + 51.537 (Mar. 2016 ) + 41.294 (Jun. 2016 ) + 129.208 (Sep. 2016 ) = $242 Mil.

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

SunPower Corp's Gross Margin for the quarter that ended in Sep. 2016 is calculated as

Gross Margin (Q: Sep. 2016 )=Gross Profit (Q: Sep. 2016 ) / Revenue (Q: Sep. 2016 )
=(Revenue - Cost of Goods Sold) / Revenue
=129 / 729.346
=17.72 %

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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

SunPower Corp had a gross margin of 17.72% for the quarter that ended in Sep. 2016 => 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 local exchange's currency.

SunPower Corp Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
Gross_Profit 50148350284510226246491625245

SunPower Corp Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
Gross_Profit 94109259917163205241129
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)
FEEDBACK