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Energy Company of Minas Gerais (NYSE:CIG)
Gross Profit
$1,965 Mil (TTM As of Dec. 2014)

Energy Company of Minas Gerais's gross profit for the three months ended in Dec. 2014 was $0 Mil. Energy Company of Minas Gerais's gross profit for the trailing twelve months (TTM) ended in Dec. 2014 was $1,965 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Energy Company of Minas Gerais's gross profit for the three months ended in Dec. 2014 was $0 Mil. Energy Company of Minas Gerais's revenue for the three months ended in Dec. 2014 was $0 Mil. Therefore, Energy Company of Minas Gerais's Gross Margin for the quarter that ended in Dec. 2014 was %.

Energy Company of Minas Gerais had a gross margin of % for the quarter that ended in Dec. 2014 => No sustainable competitive advantage

During the past 13 years, the highest Gross Margin of Energy Company of Minas Gerais was 80.63%. The lowest was 31.42%. And the median was 56.75%.

Warning Sign:

Energy Company of Minas Gerais gross margin has been in long term decline. The average rate of decline per year is -2.7%.


Definition

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

Energy Company of Minas Gerais'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
=7396.19213445 - 4845.75494909
=2,550

Energy Company of Minas Gerais's Gross Profit for the quarter that ended in Dec. 2014 is calculated as

Gross Profit (Q: Dec. 2014 )=Revenue - Cost of Goods Sold
=0 - 0
=0

Energy Company of Minas Gerais Gross Profit for the trailing twelve months (TTM) ended in Dec. 2014 was 439.710268428 (Dec. 2013 ) + 849.433978495 (Mar. 2014 ) + 675.731663685 (Jun. 2014 ) + 0 (Dec. 2014 ) = $1,965 Mil.

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

Energy Company of Minas Gerais's Gross Margin for the quarter that ended in Dec. 2014 is calculated as

Gross Margin (Q: Dec. 2014 )=Gross Profit (Q: Dec. 2014 ) / Revenue (Q: Dec. 2014 )
=(Revenue - Cost of Goods Sold) / Revenue
=0 / 0
= %

* 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

Energy Company of Minas Gerais had a gross margin of % for the quarter that ended in Dec. 2014 => 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 own currency.

Energy Company of Minas Gerais Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
Gross_Profit 2,6562,7613,7643,7462,7202,8243,1262,1382,0362,550

Energy Company of Minas Gerais Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Dec14
Gross_Profit 5225833916814204854408496760
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