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Apartment Investment & Management Co (NYSE:AIV)
Gross Profit
$625.8 Mil (TTM As of Mar. 2016)

Apartment Investment & Management Co's gross profit for the three months ended in Mar. 2016 was $156.9 Mil. Apartment Investment & Management Co's gross profit for the trailing twelve months (TTM) ended in Mar. 2016 was $625.8 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Apartment Investment & Management Co's gross profit for the three months ended in Mar. 2016 was $156.9 Mil. Apartment Investment & Management Co's revenue for the three months ended in Mar. 2016 was $246.2 Mil. Therefore, Apartment Investment & Management Co's Gross Margin for the quarter that ended in Mar. 2016 was 63.71%.

Apartment Investment & Management Co had a gross margin of 63.71% for the quarter that ended in Mar. 2016 => Durable competitive advantage

During the past 13 years, the highest Gross Margin of Apartment Investment & Management Co was 100.00%. The lowest was 54.18%. And the median was 61.16%.


Definition

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

Apartment Investment & Management Co's Gross Profit for the fiscal year that ended in Dec. 2015 is calculated as

Gross Profit (A: Dec. 2015 )=Revenue - Cost of Goods Sold
=981.31 - 365.248
=616.1

Apartment Investment & Management Co's Gross Profit for the quarter that ended in Mar. 2016 is calculated as

Gross Profit (Q: Mar. 2016 )=Revenue - Cost of Goods Sold
=246.239 - 89.372
=156.9

Apartment Investment & Management Co Gross Profit for the trailing twelve months (TTM) ended in Mar. 2016 was 155.767 (Jun. 2015 ) + 155.861 (Sep. 2015 ) + 157.264 (Dec. 2015 ) + 156.867 (Mar. 2016 ) = $625.8 Mil.

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

Apartment Investment & Management Co's Gross Margin for the quarter that ended in Mar. 2016 is calculated as

Gross Margin (Q: Mar. 2016 )=Gross Profit (Q: Mar. 2016 ) / Revenue (Q: Mar. 2016 )
=(Revenue - Cost of Goods Sold) / Revenue
=156.9 / 246.239
=63.71 %

* 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

Apartment Investment & Management Co had a gross margin of 63.71% for the quarter that ended in Mar. 2016 => 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.

Apartment Investment & Management Co Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
Gross_Profit 1,691.01,349.61,431.1656.0620.3619.2619.0594.0603.7616.1

Apartment Investment & Management Co Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
Gross_Profit 156.4148.4150.9150.3153.8147.2155.8155.9157.3156.9
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