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Cencosud SA (NYSE:CNCO)
Gross Profit
$4,426 Mil (TTM As of Dec. 2013)

Cencosud SA's gross profit for the three months ended in Dec. 2013 was $1,756 Mil. Cencosud SA's gross profit for the trailing twelve months (TTM) ended in Dec. 2013 was $4,426 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Cencosud SA's gross profit for the three months ended in Dec. 2013 was $1,756 Mil. Cencosud SA's revenue for the three months ended in Dec. 2013 was $5,436 Mil. Therefore, Cencosud SA's Gross Margin for the quarter that ended in Dec. 2013 was 32.30%.

Cencosud SA had a gross margin of 32.30% for the quarter that ended in Dec. 2013 => Competition eroding margins

During the past 5 years, the highest Gross Margin of Cencosud SA was 28.72%. The lowest was 26.72%. And the median was 28.53%.


Definition

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

Cencosud SA'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
=18361.8733389 - 13089.1519532
=5,273

Cencosud SA's Gross Profit for the quarter that ended in Dec. 2013 is calculated as

Gross Profit (Q: Dec. 2013 )=Revenue - Cost of Goods Sold
=5435.87596328 - 3680.22333179
=1,756

Cencosud SA Gross Profit for the trailing twelve months (TTM) ended in Dec. 2013 was 1110.46468625 (Sep. 2012 ) + 1560.24731525 (Dec. 2012 ) + 0 (Sep. 2013 ) + 1755.65263149 (Dec. 2013 ) = $4,426 Mil.

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

Cencosud SA'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
=1,756 / 5435.87596328
=32.30 %

* 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

Cencosud SA had a gross margin of 32.30% 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.

Cencosud SA Annual Data

Dec09Dec10Dec11Dec12Dec13
Gross_Profit 000002,6163,1603,8534,6195,273

Cencosud SA Quarterly Data

Mar11Jun11Sep11Dec11Mar12Jun12Sep12Dec12Sep13Dec13
Gross_Profit 8729329371,0941,0601,1091,1101,56001,756
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