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Autodesk Inc (NAS:ADSK)
Gross Profit
$2,110 Mil (TTM As of Oct. 2014)

Autodesk Inc's gross profit for the three months ended in Oct. 2014 was $532 Mil. Autodesk Inc's gross profit for the trailing twelve months (TTM) ended in Oct. 2014 was $2,110 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Autodesk Inc's gross profit for the three months ended in Oct. 2014 was $532 Mil. Autodesk Inc's revenue for the three months ended in Oct. 2014 was $618 Mil. Therefore, Autodesk Inc's Gross Margin for the quarter that ended in Oct. 2014 was 86.08%.

Autodesk Inc had a gross margin of 86.08% for the quarter that ended in Oct. 2014 => Durable competitive advantage

During the past 13 years, the highest Gross Margin of Autodesk Inc was 94.06%. The lowest was 83.01%. And the median was 88.84%.


Definition

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

Autodesk Inc's Gross Profit for the fiscal year that ended in Jan. 2014 is calculated as

Gross Profit (A: Jan. 2014 )=Revenue - Cost of Goods Sold
=2273.9 - 274.3
=2,000

Autodesk Inc's Gross Profit for the quarter that ended in Oct. 2014 is calculated as

Gross Profit (Q: Oct. 2014 )=Revenue - Cost of Goods Sold
=618 - 86
=532

Autodesk Inc Gross Profit for the trailing twelve months (TTM) ended in Oct. 2014 was 514.7 (Jan. 2014 ) + 513.8 (Apr. 2014 ) + 549.2 (Jul. 2014 ) + 532 (Oct. 2014 ) = $2,110 Mil.

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

Autodesk Inc's Gross Margin for the quarter that ended in Oct. 2014 is calculated as

Gross Margin (Q: Oct. 2014 )=Gross Profit (Q: Oct. 2014 ) / Revenue (Q: Oct. 2014 )
=(Revenue - Cost of Goods Sold) / Revenue
=532 / 618
=86.08 %

* 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

Autodesk Inc had a gross margin of 86.08% for the quarter that ended in Oct. 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.

Autodesk Inc Annual Data

Jan05Jan06Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14
Gross_Profit 1,0691,3661,6231,9652,0961,5221,7551,9872,0742,000

Autodesk Inc Quarterly Data

Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14
Gross_Profit 509490545503494488515514549532
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