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Wells Fargo & Co (NYSE:WFC)
Gross Profit
$0 Mil (TTM As of Jun. 2014)

Wells Fargo & Co's gross profit for the three months ended in Jun. 2014 was $0 Mil. Wells Fargo & Co's gross profit for the trailing twelve months (TTM) ended in Jun. 2014 was $0 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Wells Fargo & Co's gross profit for the three months ended in Jun. 2014 was $0 Mil. Wells Fargo & Co's revenue for the three months ended in Jun. 2014 was $21,066 Mil. Therefore, Wells Fargo & Co's Gross Margin for the quarter that ended in Jun. 2014 was 100.00%.

Wells Fargo & Co had a gross margin of 100.00% for the quarter that ended in Jun. 2014 => Durable competitive advantage


Definition

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

Wells Fargo & 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
=83780 - 0
=83,780

Wells Fargo & Co's Gross Profit for the quarter that ended in Jun. 2014 is calculated as

Gross Profit (Q: Jun. 2014 )=Revenue - Cost of Goods Sold
=21066 - 0
=21,066

Wells Fargo & Co Gross Profit for the trailing twelve months (TTM) ended in Jun. 2014 was 0 (Sep. 2013 ) + 0 (Dec. 2013 ) + 0 (Mar. 2014 ) + 0 (Jun. 2014 ) = $0 Mil.

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

Wells Fargo & Co'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
=21,066 / 21066
=100.00 %

* 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

Wells Fargo & Co had a gross margin of 100.00% for the quarter that ended in Jun. 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.

Wells Fargo & Co Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Gross_Profit 0000000000

Wells Fargo & Co Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
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