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Cencosud SA (NYSE:CNCO)
Gross Profit
$4,751 Mil (TTM As of Sep. 2014)

Cencosud SA's gross profit for the six months ended in Sep. 2014 was $4,790 Mil. Cencosud SA's gross profit for the trailing twelve months (TTM) ended in Sep. 2014 was $4,751 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Cencosud SA's gross profit for the six months ended in Sep. 2014 was $4,790 Mil. Cencosud SA's revenue for the six months ended in Sep. 2014 was $16,821 Mil. Therefore, Cencosud SA's Gross Margin for the quarter that ended in Sep. 2014 was 28.48%.

Cencosud SA had a gross margin of 28.48% for the quarter that ended in Sep. 2014 => 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
=16545.6637232 - 11794.4777552
=4,751

Cencosud SA's Gross Profit for the quarter that ended in Sep. 2014 is calculated as

Gross Profit (Q: Sep. 2014 )=Revenue - Cost of Goods Sold
=16820.8325984 - 12030.651824
=4,790

For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. Cencosud SA Gross Profit for the trailing twelve months (TTM) ended in Sep. 2014 was $4,751 Mil.

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

Cencosud SA's Gross Margin for the quarter that ended in Sep. 2014 is calculated as

Gross Margin (Q: Sep. 2014 )=Gross Profit (Q: Sep. 2014 ) / Revenue (Q: Sep. 2014 )
=(Revenue - Cost of Goods Sold) / Revenue
=4,790 / 16820.8325984
=28.48 %

* 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 28.48% for the quarter that ended in Sep. 2014 => 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 000002,3572,8483,4724,1624,751

Cencosud SA Semi-Annual Data

Dec09Dec10Dec11Dec12Dec13Sep14
Gross_Profit 00002,3572,8483,4724,1624,7514,790
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