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Dick's Sporting Goods Inc (NYSE:DKS)
Gross Profit
$2,210 Mil (TTM As of Apr. 2016)

Dick's Sporting Goods Inc's gross profit for the three months ended in Apr. 2016 was $496 Mil. Dick's Sporting Goods Inc's gross profit for the trailing twelve months (TTM) ended in Apr. 2016 was $2,210 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Dick's Sporting Goods Inc's gross profit for the three months ended in Apr. 2016 was $496 Mil. Dick's Sporting Goods Inc's revenue for the three months ended in Apr. 2016 was $1,660 Mil. Therefore, Dick's Sporting Goods Inc's Gross Margin for the quarter that ended in Apr. 2016 was 29.86%.

Dick's Sporting Goods Inc had a gross margin of 29.86% for the quarter that ended in Apr. 2016 => Competition eroding margins

During the past 13 years, the highest Gross Margin of Dick's Sporting Goods Inc was 31.48%. The lowest was 27.58%. And the median was 29.90%.


Definition

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

Dick's Sporting Goods Inc's Gross Profit for the fiscal year that ended in Jan. 2016 is calculated as

Gross Profit (A: Jan. 2016 )=Revenue - Cost of Goods Sold
=7270.965 - 5088.078
=2,183

Dick's Sporting Goods Inc's Gross Profit for the quarter that ended in Apr. 2016 is calculated as

Gross Profit (Q: Apr. 2016 )=Revenue - Cost of Goods Sold
=1660.343 - 1164.546
=496

Dick's Sporting Goods Inc Gross Profit for the trailing twelve months (TTM) ended in Apr. 2016 was 553.558 (Jul. 2015 ) + 488.376 (Oct. 2015 ) + 671.966 (Jan. 2016 ) + 495.797 (Apr. 2016 ) = $2,210 Mil.

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

Dick's Sporting Goods Inc's Gross Margin for the quarter that ended in Apr. 2016 is calculated as

Gross Margin (Q: Apr. 2016 )=Gross Profit (Q: Apr. 2016 ) / Revenue (Q: Apr. 2016 )
=(Revenue - Cost of Goods Sold) / Revenue
=496 / 1660.343
=29.86 %

* 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

Dick's Sporting Goods Inc had a gross margin of 29.86% for the quarter that ended in Apr. 2016 => 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.

Dick's Sporting Goods Inc Annual Data

Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14Jan15Jan16
Gross_Profit 8971,1581,1841,2171,4491,5951,8371,9442,0872,183

Dick's Sporting Goods Inc Quarterly Data

Apr14Jul14Oct14Jan15Apr15Jul15Oct15Jan16Apr16Jul16
Gross_Profit 441503452691469554488672496597
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