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Starbucks Corp (FRA:SRB)
Gross Profit
€7,165 Mil (TTM As of Sep. 2014)

Starbucks Corp's gross profit for the three months ended in Sep. 2014 was €1,940 Mil. Starbucks Corp's gross profit for the trailing twelve months (TTM) ended in Sep. 2014 was €7,165 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Starbucks Corp's gross profit for the three months ended in Sep. 2014 was €1,940 Mil. Starbucks Corp's revenue for the three months ended in Sep. 2014 was €3,300 Mil. Therefore, Starbucks Corp's Gross Margin for the quarter that ended in Sep. 2014 was 58.78%.

Starbucks Corp had a gross margin of 58.78% for the quarter that ended in Sep. 2014 => Durable competitive advantage

During the past 13 years, the highest Gross Margin of Starbucks Corp was 58.75%. The lowest was 19.09%. And the median was 22.18%.


Definition

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

Starbucks Corp'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
=12981.6890292 - 5413.4175217
=7,568

Starbucks Corp's Gross Profit for the quarter that ended in Sep. 2014 is calculated as

Gross Profit (Q: Sep. 2014 )=Revenue - Cost of Goods Sold
=3299.68429361 - 1359.98421468
=1,940

Starbucks Corp Gross Profit for the trailing twelve months (TTM) ended in Sep. 2014 was 1794.78707783 (Dec. 2013 ) + 1625.34395366 (Mar. 2014 ) + 1805.02586844 (Jun. 2014 ) + 1939.70007893 (Sep. 2014 ) = €7,165 Mil.

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

Starbucks Corp'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
=1,940 / 3299.68429361
=58.78 %

* 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

Starbucks Corp had a gross margin of 58.78% 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.

Starbucks Corp Annual Data

Sep05Sep06Sep07Sep08Sep09Sep10Sep11Sep12Sep13Sep14
Gross_Profit 1,1661,3151,5454,3273,6804,5234,9385,7726,2207,568

Starbucks Corp Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
Gross_Profit 1,5111,4691,6331,5481,6331,5801,7951,6251,8051,940
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