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Sysco Corp (NYSE:SYY)
Gross Profit
$8,181 Mil (TTM As of Jun. 2014)

Sysco Corp's gross profit for the three months ended in Jun. 2014 was $2,156 Mil. Sysco Corp's gross profit for the trailing twelve months (TTM) ended in Jun. 2014 was $8,181 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Sysco Corp's gross profit for the three months ended in Jun. 2014 was $2,156 Mil. Sysco Corp's revenue for the three months ended in Jun. 2014 was $12,287 Mil. Therefore, Sysco Corp's Gross Margin for the quarter that ended in Jun. 2014 was 17.55%.

Sysco Corp had a gross margin of 17.55% for the quarter that ended in Jun. 2014 => No sustainable competitive advantage

During the past 13 years, the highest Gross Margin of Sysco Corp was 20.07%. The lowest was 17.59%. And the median was 19.26%.

Warning Sign:

Sysco Corp gross margin has been in long term decline. The average rate of decline per year is -1.8%.


Definition

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

Sysco Corp's Gross Profit for the fiscal year that ended in Jun. 2014 is calculated as

Gross Profit (A: Jun. 2014 )=Revenue - Cost of Goods Sold
=46516.712 - 38335.677
=8,181

Sysco Corp's Gross Profit for the quarter that ended in Jun. 2014 is calculated as

Gross Profit (Q: Jun. 2014 )=Revenue - Cost of Goods Sold
=12286.992 - 10131.136
=2,156

Sysco Corp Gross Profit for the trailing twelve months (TTM) ended in Jun. 2014 was 2065.487 (Sep. 2013 ) + 1964.951 (Dec. 2013 ) + 1994.741 (Mar. 2014 ) + 2155.856 (Jun. 2014 ) = $8,181 Mil.

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

Sysco Corp's Gross Margin for the quarter that ended in Jun. 2014 is calculated as

Gross Margin (Q: Jun. 2014 )=Gross Profit (Q: Jun. 2014 ) / Revenue (Q: Jun. 2014 )
=(Revenue - Cost of Goods Sold) / Revenue
=2,156 / 12286.992
=17.55 %

* 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

Sysco Corp had a gross margin of 17.55% for the quarter that ended in Jun. 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.

Sysco Corp Annual Data

Jun05Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14
Gross_Profit 5,7846,2916,7577,1957,0367,1887,3217,6777,9978,181

Sysco Corp Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
Gross_Profit 1,8722,0122,0301,9521,9422,0722,0651,9651,9952,156
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