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TIBCO Software Inc (NAS:TIBX)
Gross Profit
$775 Mil (TTM As of May. 2014)

TIBCO Software Inc's gross profit for the three months ended in May. 2014 was $173 Mil. TIBCO Software Inc's gross profit for the trailing twelve months (TTM) ended in May. 2014 was $775 Mil.

Gross Margin is calculated as gross profit divided by its revenue. TIBCO Software Inc's gross profit for the three months ended in May. 2014 was $173 Mil. TIBCO Software Inc's revenue for the three months ended in May. 2014 was $252 Mil. Therefore, TIBCO Software Inc's Gross Margin for the quarter that ended in May. 2014 was 68.51%.

TIBCO Software Inc had a gross margin of 68.51% for the quarter that ended in May. 2014 => Durable competitive advantage

During the past 13 years, the highest Gross Margin of TIBCO Software Inc was 77.95%. The lowest was 59.28%. And the median was 73.42%.


Definition

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

TIBCO Software Inc's Gross Profit for the fiscal year that ended in Nov. 2013 is calculated as

Gross Profit (A: Nov. 2013 )=Revenue - Cost of Goods Sold
=1069.95 - 307.445
=763

TIBCO Software Inc's Gross Profit for the quarter that ended in May. 2014 is calculated as

Gross Profit (Q: May. 2014 )=Revenue - Cost of Goods Sold
=252.299 - 79.457
=173

TIBCO Software Inc Gross Profit for the trailing twelve months (TTM) ended in May. 2014 was 192.886 (Aug. 2013 ) + 233.591 (Nov. 2013 ) + 175.347 (Feb. 2014 ) + 172.842 (May. 2014 ) = $775 Mil.

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

TIBCO Software Inc's Gross Margin for the quarter that ended in May. 2014 is calculated as

Gross Margin (Q: May. 2014 )=Gross Profit (Q: May. 2014 ) / Revenue (Q: May. 2014 )
=(Revenue - Cost of Goods Sold) / Revenue
=173 / 252.299
=68.51 %

* 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

TIBCO Software Inc had a gross margin of 68.51% for the quarter that ended in May. 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.

TIBCO Software Inc Annual Data

Nov04Nov05Nov06Nov07Nov08Nov09Nov10Nov11Nov12Nov13
Gross_Profit 294322384418467462556673742763

TIBCO Software Inc Quarterly Data

May12Aug12Nov12Feb13May13Aug13Nov13Feb14May14Aug14
Gross_Profit 178183221164172193234175173175
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