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Forest City Realty Trust Inc (NYSE:FCE.A)
Gross Profit
$447 Mil (TTM As of Sep. 2015)

Forest City Realty Trust Inc's gross profit for the three months ended in Sep. 2015 was $136 Mil. Forest City Realty Trust Inc's gross profit for the trailing twelve months (TTM) ended in Sep. 2015 was $447 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Forest City Realty Trust Inc's gross profit for the three months ended in Sep. 2015 was $136 Mil. Forest City Realty Trust Inc's revenue for the three months ended in Sep. 2015 was $289 Mil. Therefore, Forest City Realty Trust Inc's Gross Margin for the quarter that ended in Sep. 2015 was 46.90%.

Forest City Realty Trust Inc had a gross margin of 46.90% for the quarter that ended in Sep. 2015 => Durable competitive advantage


Definition

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

Forest City Realty Trust Inc's Gross Profit for the fiscal year that ended in Dec. 2014 is calculated as

Gross Profit (A: Dec. 2014 )=Revenue - Cost of Goods Sold
=966.052 - 583.177
=383

Forest City Realty Trust Inc's Gross Profit for the quarter that ended in Sep. 2015 is calculated as

Gross Profit (Q: Sep. 2015 )=Revenue - Cost of Goods Sold
=289.057 - 153.503
=136

Forest City Realty Trust Inc Gross Profit for the trailing twelve months (TTM) ended in Sep. 2015 was 100.639 (Dec. 2014 ) + 96.154 (Mar. 2015 ) + 114.891 (Jun. 2015 ) + 135.554 (Sep. 2015 ) = $447 Mil.

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

Forest City Realty Trust Inc's Gross Margin for the quarter that ended in Sep. 2015 is calculated as

Gross Margin (Q: Sep. 2015 )=Gross Profit (Q: Sep. 2015 ) / Revenue (Q: Sep. 2015 )
=(Revenue - Cost of Goods Sold) / Revenue
=136 / 289.057
=46.90 %

* 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

Forest City Realty Trust Inc had a gross margin of 46.90% for the quarter that ended in Sep. 2015 => 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.

Forest City Realty Trust Inc Annual Data

Jan05Jan06Jan07Jan08Jan09Jan10Jan11Jan12Jan13Dec14
Gross_Profit 000503500527446383439383

Forest City Realty Trust Inc Quarterly Data

Apr13Jul13Oct13Mar14Jun14Sep14Dec14Mar15Jun15Sep15
Gross_Profit 981005690949810196115136
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