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DeVry Education Group Inc (NYSE:DV)
Gross Profit
$940 Mil (TTM As of Jun. 2014)

DeVry Education Group Inc's gross profit for the three months ended in Jun. 2014 was $229 Mil. DeVry Education Group Inc's gross profit for the trailing twelve months (TTM) ended in Jun. 2014 was $940 Mil.

Gross Margin is calculated as gross profit divided by its revenue. DeVry Education Group Inc's gross profit for the three months ended in Jun. 2014 was $229 Mil. DeVry Education Group Inc's revenue for the three months ended in Jun. 2014 was $485 Mil. Therefore, DeVry Education Group Inc's Gross Margin for the quarter that ended in Jun. 2014 was 47.21%.

DeVry Education Group Inc had a gross margin of 47.21% for the quarter that ended in Jun. 2014 => Durable competitive advantage

During the past 13 years, the highest Gross Margin of DeVry Education Group Inc was 57.59%. The lowest was 42.59%. And the median was 47.63%.


Definition

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

DeVry Education Group Inc's Gross Profit for the fiscal year that ended in Jun. 2013 is calculated as

Gross Profit (A: Jun. 2013 )=Revenue - Cost of Goods Sold
=1964.375 - 962.223
=1,002

DeVry Education Group Inc's Gross Profit for the quarter that ended in Jun. 2014 is calculated as

Gross Profit (Q: Jun. 2014 )=Revenue - Cost of Goods Sold
=485.073 - 256.073
=229

DeVry Education Group Inc Gross Profit for the trailing twelve months (TTM) ended in Jun. 2014 was 209.176 (Sep. 2013 ) + 248.272 (Dec. 2013 ) + 253.486 (Mar. 2014 ) + 229 (Jun. 2014 ) = $940 Mil.

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

DeVry Education Group Inc'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
=229 / 485.073
=47.21 %

* 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

DeVry Education Group Inc had a gross margin of 47.21% for the quarter that ended in Jun. 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.

DeVry Education Group Inc Annual Data

Jun04Jun05Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13
Gross_Profit 3653443914475897921,0891,2571,1141,002

DeVry Education Group Inc Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
Gross_Profit 297254240262267234209248253229
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