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Yamana Gold Inc (NYSE:AUY)
Gross Profit
$287 Mil (TTM As of Sep. 2016)

Yamana Gold Inc's gross profit for the three months ended in Sep. 2016 was $91 Mil. Yamana Gold Inc's gross profit for the trailing twelve months (TTM) ended in Sep. 2016 was $287 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Yamana Gold Inc's gross profit for the three months ended in Sep. 2016 was $91 Mil. Yamana Gold Inc's revenue for the three months ended in Sep. 2016 was $464 Mil. Therefore, Yamana Gold Inc's Gross Margin for the quarter that ended in Sep. 2016 was 19.60%.

Yamana Gold Inc had a gross margin of 19.60% for the quarter that ended in Sep. 2016 => No sustainable competitive advantage

During the past 13 years, the highest Gross Margin of Yamana Gold Inc was 61.50%. The lowest was 10.69%. And the median was 39.34%.

Warning Sign:

Yamana Gold Inc gross margin has been in long term decline. The average rate of decline per year is -27.3%.


Definition

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

Yamana Gold Inc'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
=1824.9 - 1629.9
=195

Yamana Gold Inc's Gross Profit for the quarter that ended in Sep. 2016 is calculated as

Gross Profit (Q: Sep. 2016 )=Revenue - Cost of Goods Sold
=464.3 - 373.3
=91

Yamana Gold Inc Gross Profit for the trailing twelve months (TTM) ended in Sep. 2016 was 42.7 (Dec. 2015 ) + 90 (Mar. 2016 ) + 63.7 (Jun. 2016 ) + 91 (Sep. 2016 ) = $287 Mil.

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

Yamana Gold Inc'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
=91 / 464.3
=19.60 %

* 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

Yamana Gold Inc had a gross margin of 19.60% for the quarter that ended in Sep. 2016 => No sustainable 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 local exchange's currency.

Yamana Gold Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
Gross_Profit 694593364477541,1001,121541286195

Yamana Gold Inc Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
Gross_Profit 81848838565243906491
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