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Apollo Education Group Inc (NAS:APOL)
Gross Profit
$1,168 Mil (TTM As of Feb. 2016)

Apollo Education Group Inc's gross profit for the three months ended in Feb. 2016 was $195 Mil. Apollo Education Group Inc's gross profit for the trailing twelve months (TTM) ended in Feb. 2016 was $1,168 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Apollo Education Group Inc's gross profit for the three months ended in Feb. 2016 was $195 Mil. Apollo Education Group Inc's revenue for the three months ended in Feb. 2016 was $465 Mil. Therefore, Apollo Education Group Inc's Gross Margin for the quarter that ended in Feb. 2016 was 41.84%.

Apollo Education Group Inc had a gross margin of 41.84% for the quarter that ended in Feb. 2016 => Durable competitive advantage

During the past 13 years, the highest Gross Margin of Apollo Education Group Inc was 62.52%. The lowest was 52.95%. And the median was 56.92%.

Warning Sign:

Apollo Education Group Inc gross margin has been in long term decline. The average rate of decline per year is -1.8%.


Definition

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

Apollo Education Group Inc's Gross Profit for the fiscal year that ended in Aug. 2015 is calculated as

Gross Profit (A: Aug. 2015 )=Revenue - Cost of Goods Sold
=2566.277 - 1207.535
=1,359

Apollo Education Group Inc's Gross Profit for the quarter that ended in Feb. 2016 is calculated as

Gross Profit (Q: Feb. 2016 )=Revenue - Cost of Goods Sold
=465.348 - 270.64
=195

Apollo Education Group Inc Gross Profit for the trailing twelve months (TTM) ended in Feb. 2016 was 382.975 (May. 2015 ) + 295.48 (Aug. 2015 ) + 294.694 (Nov. 2015 ) + 194.708 (Feb. 2016 ) = $1,168 Mil.

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

Apollo Education Group Inc's Gross Margin for the quarter that ended in Feb. 2016 is calculated as

Gross Margin (Q: Feb. 2016 )=Gross Profit (Q: Feb. 2016 ) / Revenue (Q: Feb. 2016 )
=(Revenue - Cost of Goods Sold) / Revenue
=195 / 465.348
=41.84 %

* 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

Apollo Education Group Inc had a gross margin of 41.84% for the quarter that ended in Feb. 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.

Apollo Education Group Inc Annual Data

Aug06Aug07Aug08Aug09Aug10Aug11Aug12Aug13Aug14Aug15
Gross_Profit 1,3651,4861,7702,3712,8012,9592,4532,1021,7231,359

Apollo Education Group Inc Quarterly Data

Nov13Feb14May14Aug14Nov14Feb15May15Aug15Nov15Feb16
Gross_Profit 511356469378393284383295295195
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