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Wal-Mart Stores Inc (NYSE:WMT)
Gross Profit
$122,163 Mil (TTM As of Apr. 2016)

Wal-Mart Stores Inc's gross profit for the three months ended in Apr. 2016 was $29,360 Mil. Wal-Mart Stores Inc's gross profit for the trailing twelve months (TTM) ended in Apr. 2016 was $122,163 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Wal-Mart Stores Inc's gross profit for the three months ended in Apr. 2016 was $29,360 Mil. Wal-Mart Stores Inc's revenue for the three months ended in Apr. 2016 was $115,904 Mil. Therefore, Wal-Mart Stores Inc's Gross Margin for the quarter that ended in Apr. 2016 was 25.33%.

Wal-Mart Stores Inc had a gross margin of 25.33% for the quarter that ended in Apr. 2016 => Competition eroding margins

During the past 13 years, the highest Gross Margin of Wal-Mart Stores Inc was 25.40%. The lowest was 24.22%. And the median was 24.83%.


Definition

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

Wal-Mart Stores Inc's Gross Profit for the fiscal year that ended in Jan. 2016 is calculated as

Gross Profit (A: Jan. 2016 )=Revenue - Cost of Goods Sold
=482130 - 360984
=121,146

Wal-Mart Stores Inc's Gross Profit for the quarter that ended in Apr. 2016 is calculated as

Gross Profit (Q: Apr. 2016 )=Revenue - Cost of Goods Sold
=115904 - 86544
=29,360

Wal-Mart Stores Inc Gross Profit for the trailing twelve months (TTM) ended in Apr. 2016 was 30173 (Jul. 2015 ) + 29962 (Oct. 2015 ) + 32668 (Jan. 2016 ) + 29360 (Apr. 2016 ) = $122,163 Mil.

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

Wal-Mart Stores Inc's Gross Margin for the quarter that ended in Apr. 2016 is calculated as

Gross Margin (Q: Apr. 2016 )=Gross Profit (Q: Apr. 2016 ) / Revenue (Q: Apr. 2016 )
=(Revenue - Cost of Goods Sold) / Revenue
=29,360 / 115904
=25.33 %

* 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

Wal-Mart Stores Inc had a gross margin of 25.33% for the quarter that ended in Apr. 2016 => Competition eroding margins


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.

Wal-Mart Stores Inc Annual Data

Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14Jan15Jan16
Gross_Profit 84,38992,126100,318103,641106,903111,516116,354118,225120,565121,146

Wal-Mart Stores Inc Quarterly Data

Apr14Jul14Oct14Jan15Apr15Jul15Oct15Jan16Apr16Jul16
Gross_Profit 28,24630,11529,75432,45028,34330,17329,96232,66829,36031,369
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