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Coca-Cola Enterprises Inc (NYSE:CCE)
Gross Profit
$2,750 Mil (TTM As of Jun. 2015)

Coca-Cola Enterprises Inc's gross profit for the three months ended in Jun. 2015 was $705 Mil. Coca-Cola Enterprises Inc's gross profit for the trailing twelve months (TTM) ended in Jun. 2015 was $2,750 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Coca-Cola Enterprises Inc's gross profit for the three months ended in Jun. 2015 was $705 Mil. Coca-Cola Enterprises Inc's revenue for the three months ended in Jun. 2015 was $1,928 Mil. Therefore, Coca-Cola Enterprises Inc's Gross Margin for the quarter that ended in Jun. 2015 was 36.57%.

Coca-Cola Enterprises Inc had a gross margin of 36.57% for the quarter that ended in Jun. 2015 => Competition eroding margins

During the past 13 years, the highest Gross Margin of Coca-Cola Enterprises Inc was 46.11%. The lowest was 34.85%. And the median was 38.95%.


Definition

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

Coca-Cola Enterprises Inc's Gross Profit for the fiscal year that ended in Dec. 2014 is calculated as

Gross Profit (A: Dec. 2014 )=Revenue - Cost of Goods Sold
=8264 - 5291
=2,973

Coca-Cola Enterprises Inc's Gross Profit for the quarter that ended in Jun. 2015 is calculated as

Gross Profit (Q: Jun. 2015 )=Revenue - Cost of Goods Sold
=1928 - 1223
=705

Coca-Cola Enterprises Inc Gross Profit for the trailing twelve months (TTM) ended in Jun. 2015 was 808 (Sep. 2014 ) + 669 (Dec. 2014 ) + 568 (Mar. 2015 ) + 705 (Jun. 2015 ) = $2,750 Mil.

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

Coca-Cola Enterprises Inc's Gross Margin for the quarter that ended in Jun. 2015 is calculated as

Gross Margin (Q: Jun. 2015 )=Gross Profit (Q: Jun. 2015 ) / Revenue (Q: Jun. 2015 )
=(Revenue - Cost of Goods Sold) / Revenue
=705 / 1928
=36.57 %

* 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

Coca-Cola Enterprises Inc had a gross margin of 36.57% for the quarter that ended in Jun. 2015 => Competition eroding margins


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.

Coca-Cola Enterprises Inc Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
Gross_Profit 7,5587,8187,9818,0442,4042,4803,0302,9002,8622,973

Coca-Cola Enterprises Inc Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
Gross_Profit 634753787688650846808669568705
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