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Apartment Investment & Management Co (NYSE:AIV)
Gross Profit
\$632.5 Mil (TTM As of Sep. 2016)

Apartment Investment & Management Co's gross profit for the three months ended in Sep. 2016 was \$156.4 Mil. Apartment Investment & Management Co's gross profit for the trailing twelve months (TTM) ended in Sep. 2016 was \$632.5 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 Sep. 2016 was \$156.4 Mil. Apartment Investment & Management Co's revenue for the three months ended in Sep. 2016 was \$248.9 Mil. Therefore, Apartment Investment & Management Co's Gross Margin for the quarter that ended in Sep. 2016 was 62.85%.

Apartment Investment & Management Co had a gross margin of 62.85% for the quarter that ended in Sep. 2016 => Durable competitive advantage

During the past 13 years, the highest Gross Margin of Apartment Investment & Management Co was 100.00%. The lowest was 53.80%. And the median was 60.34%.

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 Sep. 2016 is calculated as

 Gross Profit (Q: Sep. 2016 ) = Revenue - Cost of Goods Sold = 248.904 - 92.461 = 156.4

Apartment Investment & Management Co Gross Profit for the trailing twelve months (TTM) ended in Sep. 2016 was 157.264 (Dec. 2015 ) + 156.867 (Mar. 2016 ) + 161.896 (Jun. 2016 ) + 156.443 (Sep. 2016 ) = \$632.5 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 Sep. 2016 is calculated as

 Gross Margin (Q: Sep. 2016 ) = Gross Profit (Q: Sep. 2016 ) / Revenue (Q: Sep. 2016 ) = (Revenue - Cost of Goods Sold) / Revenue = 156.4 / 248.904 = 62.85 %

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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 62.85% for the quarter that ended in Sep. 2016 => Durable competitive advantage

Related Terms

Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Apartment Investment & Management Co Annual Data

 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Gross_Profit 0.0 1,349.6 686.8 608.5 528.6 527.7 572.2 594.0 603.4 616.1

Apartment Investment & Management Co Quarterly Data

 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Gross_Profit 150.9 150.3 153.8 147.2 155.8 155.9 157.3 156.9 161.9 156.4
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