Switch to:
Walt Disney Co (NYSE:DIS)
Gross Profit
$22,393 Mil (TTM As of Sep. 2014)

Walt Disney Co's gross profit for the three months ended in Sep. 2014 was $13,249 Mil. Walt Disney Co's gross profit for the trailing twelve months (TTM) ended in Sep. 2014 was $22,393 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Walt Disney Co's gross profit for the three months ended in Sep. 2014 was $13,249 Mil. Walt Disney Co's revenue for the three months ended in Sep. 2014 was $12,389 Mil. Therefore, Walt Disney Co's Gross Margin for the quarter that ended in Sep. 2014 was 106.94%.

Walt Disney Co had a gross margin of 106.94% for the quarter that ended in Sep. 2014 => Durable competitive advantage

During the past 13 years, the highest Gross Margin of Walt Disney Co was 45.88%. The lowest was 9.50%. And the median was 19.07%.


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. 2014 is calculated as

Gross Profit (A: Sep. 2014 )=Revenue - Cost of Goods Sold
=48813 - 26420
=22,393

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

Gross Profit (Q: Sep. 2014 )=Revenue - Cost of Goods Sold
=12389 - -860
=13,249

Walt Disney Co Gross Profit for the trailing twelve months (TTM) ended in Sep. 2014 was 2665 (Dec. 2013 ) + 2981 (Mar. 2014 ) + 3498 (Jun. 2014 ) + 13249 (Sep. 2014 ) = $22,393 Mil.

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

Walt Disney Co'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
=13,249 / 12389
=106.94 %

* 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 106.94% for the quarter that ended in Sep. 2014 => Durable 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.

Walt Disney Co Annual Data

Sep05Sep06Sep07Sep08Sep09Sep10Sep11Sep12Sep13Sep14
Gross_Profit 3,9315,3556,7817,4435,6976,7267,7818,86320,00722,393

Walt Disney Co Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
Gross_Profit 2,9602,0242,0922,1953,00412,7162,6652,9813,49813,249
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK