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Coca-Cola Enterprises Inc (NYSE:CCE)
Gross Profit
$2,862 Mil (TTM As of Dec. 2013)

Coca-Cola Enterprises Inc's gross profit for the three months ended in Dec. 2013 was $688 Mil. Coca-Cola Enterprises Inc's gross profit for the trailing twelve months (TTM) ended in Dec. 2013 was $2,862 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 Dec. 2013 was $688 Mil. Coca-Cola Enterprises Inc's revenue for the three months ended in Dec. 2013 was $2,032 Mil. Therefore, Coca-Cola Enterprises Inc's Gross Margin for the quarter that ended in Dec. 2013 was 33.86%.

Coca-Cola Enterprises Inc had a gross margin of 33.86% for the quarter that ended in Dec. 2013 => 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 39.69%.

Warning Sign:

Coca-Cola Enterprises Inc gross margin has been in long term decline. The average rate of decline per year is -1.1%.


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. 2013 is calculated as

Gross Profit (A: Dec. 2013 )=Revenue - Cost of Goods Sold
=8212 - 5350
=2,862

Coca-Cola Enterprises Inc's Gross Profit for the quarter that ended in Dec. 2013 is calculated as

Gross Profit (Q: Dec. 2013 )=Revenue - Cost of Goods Sold
=2032 - 1344
=688

Coca-Cola Enterprises Inc Gross Profit for the trailing twelve months (TTM) ended in Dec. 2013 was 634 (Mar. 2013 ) + 753 (Jun. 2013 ) + 787 (Sep. 2013 ) + 688 (Dec. 2013 ) = $2,862 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 Dec. 2013 is calculated as

Gross Margin (Q: Dec. 2013 )=Gross Profit (Q: Dec. 2013 ) / Revenue (Q: Dec. 2013 )
=(Revenue - Cost of Goods Sold) / Revenue
=688 / 2032
=33.86 %

* 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 33.86% for the quarter that ended in Dec. 2013 => 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

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Gross_Profit 7,4197,5587,8187,9818,0442,4042,4803,0302,9002,862

Coca-Cola Enterprises Inc Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
Gross_Profit 808667656807775662634753787688
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