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DeVry Education Group Inc (NYSE:DV)
Gross Profit
$943 Mil (TTM As of Mar. 2014)

DeVry Education Group Inc's gross profit for the three months ended in Mar. 2014 was $253 Mil. DeVry Education Group Inc's gross profit for the trailing twelve months (TTM) ended in Mar. 2014 was $943 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 Mar. 2014 was $253 Mil. DeVry Education Group Inc's revenue for the three months ended in Mar. 2014 was $496 Mil. Therefore, DeVry Education Group Inc's Gross Margin for the quarter that ended in Mar. 2014 was 51.09%.

DeVry Education Group Inc had a gross margin of 51.09% for the quarter that ended in Mar. 2014 => Durable competitive advantage

During the past 13 years, the highest Gross Margin of DeVry Education Group Inc was 57.59%. The lowest was 42.99%. And the median was 47.75%.


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 Mar. 2014 is calculated as

Gross Profit (Q: Mar. 2014 )=Revenue - Cost of Goods Sold
=496.117 - 242.631
=253

DeVry Education Group Inc Gross Profit for the trailing twelve months (TTM) ended in Mar. 2014 was 232.386 (Jun. 2013 ) + 209.176 (Sep. 2013 ) + 248.272 (Dec. 2013 ) + 253.486 (Mar. 2014 ) = $943 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 Mar. 2014 is calculated as

Gross Margin (Q: Mar. 2014 )=Gross Profit (Q: Mar. 2014 ) / Revenue (Q: Mar. 2014 )
=(Revenue - Cost of Goods Sold) / Revenue
=253 / 496.117
=51.09 %

* 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 51.09% for the quarter that ended in Mar. 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

Jun05Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14
Gross_Profit 3443914475897921,0891,2571,1141,002940

DeVry Education Group Inc Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
Gross_Profit 297254240262268232209248253229
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