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John Wiley & Sons Inc (NYSE:JW.A)
Gross Profit
$1,268 Mil (TTM As of Apr. 2014)

John Wiley & Sons Inc's gross profit for the three months ended in Apr. 2014 was $331 Mil. John Wiley & Sons Inc's gross profit for the trailing twelve months (TTM) ended in Apr. 2014 was $1,268 Mil.

Gross Margin is calculated as gross profit divided by its revenue. John Wiley & Sons Inc's gross profit for the three months ended in Apr. 2014 was $331 Mil. John Wiley & Sons Inc's revenue for the three months ended in Apr. 2014 was $457 Mil. Therefore, John Wiley & Sons Inc's Gross Margin for the quarter that ended in Apr. 2014 was 72.40%.

John Wiley & Sons Inc had a gross margin of 72.40% for the quarter that ended in Apr. 2014 => Durable competitive advantage

During the past 13 years, the highest Gross Margin of John Wiley & Sons Inc was 72.79%. The lowest was 65.91%. And the median was 68.76%.


Definition

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

John Wiley & Sons Inc's Gross Profit for the fiscal year that ended in Apr. 2014 is calculated as

Gross Profit (A: Apr. 2014 )=Revenue - Cost of Goods Sold
=1775.195 - 506.879
=1,268

John Wiley & Sons Inc's Gross Profit for the quarter that ended in Apr. 2014 is calculated as

Gross Profit (Q: Apr. 2014 )=Revenue - Cost of Goods Sold
=457.089 - 126.173
=331

John Wiley & Sons Inc Gross Profit for the trailing twelve months (TTM) ended in Apr. 2014 was 291.229 (Jul. 2013 ) + 318.801 (Oct. 2013 ) + 327.37 (Jan. 2014 ) + 330.916 (Apr. 2014 ) = $1,268 Mil.

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

John Wiley & Sons Inc's Gross Margin for the quarter that ended in Apr. 2014 is calculated as

Gross Margin (Q: Apr. 2014 )=Gross Profit (Q: Apr. 2014 ) / Revenue (Q: Apr. 2014 )
=(Revenue - Cost of Goods Sold) / Revenue
=331 / 457.089
=72.40 %

* 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

John Wiley & Sons Inc had a gross margin of 72.40% for the quarter that ended in Apr. 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.

John Wiley & Sons Inc Annual Data

Apr05Apr06Apr07Apr08Apr09Apr10Apr11Apr12Apr13Apr14
Gross_Profit 6497028141,1411,0951,1651,2041,2391,2291,268

John Wiley & Sons Inc Quarterly Data

Jan12Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14
Gross_Profit 309316283302331312291319327331
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