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Walt Disney Co (NYSE:DIS)
Gross Profit
$11,303 Mil (TTM As of Jun. 2014)

Walt Disney Co's gross profit for the three months ended in Jun. 2014 was $3,498 Mil. Walt Disney Co's gross profit for the trailing twelve months (TTM) ended in Jun. 2014 was $11,303 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Walt Disney Co's gross profit for the three months ended in Jun. 2014 was $3,498 Mil. Walt Disney Co's revenue for the three months ended in Jun. 2014 was $12,466 Mil. Therefore, Walt Disney Co's Gross Margin for the quarter that ended in Jun. 2014 was 28.06%.

Walt Disney Co had a gross margin of 28.06% for the quarter that ended in Jun. 2014 => Competition eroding margins

During the past 13 years, the highest Gross Margin of Walt Disney Co was 37.72%. The lowest was 9.50%. And the median was 19.03%.


Definition

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

Walt Disney Co's Gross Profit for the fiscal year that ended in Sep. 2013 is calculated as

Gross Profit (A: Sep. 2013 )=Revenue - Cost of Goods Sold
=45041 - 35591
=9,450

Walt Disney Co's Gross Profit for the quarter that ended in Jun. 2014 is calculated as

Gross Profit (Q: Jun. 2014 )=Revenue - Cost of Goods Sold
=12466 - 8968
=3,498

Walt Disney Co Gross Profit for the trailing twelve months (TTM) ended in Jun. 2014 was 2159 (Sep. 2013 ) + 2665 (Dec. 2013 ) + 2981 (Mar. 2014 ) + 3498 (Jun. 2014 ) = $11,303 Mil.

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

Walt Disney Co's Gross Margin for the quarter that ended in Jun. 2014 is calculated as

Gross Margin (Q: Jun. 2014 )=Gross Profit (Q: Jun. 2014 ) / Revenue (Q: Jun. 2014 )
=(Revenue - Cost of Goods Sold) / Revenue
=3,498 / 12466
=28.06 %

* 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

Walt Disney Co had a gross margin of 28.06% for the quarter that ended in Jun. 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.

Walt Disney Co Annual Data

Sep04Sep05Sep06Sep07Sep08Sep09Sep10Sep11Sep12Sep13
Gross_Profit 4,0483,9315,3556,7817,4435,6976,7267,7818,8639,450

Walt Disney Co Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
Gross_Profit 1,6872,9602,0242,0922,1953,0042,1592,6652,9813,498
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