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Coca-Cola Femsa, S.A.B. de C.V. (NYSE:KOF)
Gross Profit
$5,634 Mil (TTM As of Dec. 2013)

Coca-Cola Femsa, S.A.B. de C.V.'s gross profit for the three months ended in Dec. 2013 was $1,620 Mil. Coca-Cola Femsa, S.A.B. de C.V.'s gross profit for the trailing twelve months (TTM) ended in Dec. 2013 was $5,634 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Coca-Cola Femsa, S.A.B. de C.V.'s gross profit for the three months ended in Dec. 2013 was $1,620 Mil. Coca-Cola Femsa, S.A.B. de C.V.'s revenue for the three months ended in Dec. 2013 was $3,500 Mil. Therefore, Coca-Cola Femsa, S.A.B. de C.V.'s Gross Margin for the quarter that ended in Dec. 2013 was 46.30%.

Coca-Cola Femsa, S.A.B. de C.V. had a gross margin of 46.30% for the quarter that ended in Dec. 2013 => Durable competitive advantage

During the past 13 years, the highest Gross Margin of Coca-Cola Femsa, S.A.B. de C.V. was 55.60%. The lowest was 45.88%. And the median was 48.51%.


Definition

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

Coca-Cola Femsa, S.A.B. de C.V.'s Gross Profit for the fiscal year that ended in Dec. 2013 is calculated as

Gross Profit (A: Dec. 2013 )=Revenue - Cost of Goods Sold
=11799.3495689 - 6283.16442293
=5,516

Coca-Cola Femsa, S.A.B. de C.V.'s Gross Profit for the quarter that ended in Dec. 2013 is calculated as

Gross Profit (Q: Dec. 2013 )=Revenue - Cost of Goods Sold
=3499.77310543 - 1879.51898351
=1,620

Coca-Cola Femsa, S.A.B. de C.V. Gross Profit for the trailing twelve months (TTM) ended in Dec. 2013 was 1273.7997706 (Mar. 2013 ) + 1387.08666353 (Jun. 2013 ) + 1352.75554187 (Sep. 2013 ) + 1620.25412192 (Dec. 2013 ) = $5,634 Mil.

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

Coca-Cola Femsa, S.A.B. de C.V.'s Gross Margin for the quarter that ended in Dec. 2013 is calculated as

Gross Margin (Q: Dec. 2013 )=Gross Profit (Q: Dec. 2013 ) / Revenue (Q: Dec. 2013 )
=(Revenue - Cost of Goods Sold) / Revenue
=1,620 / 3499.77310543
=46.30 %

* 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

Coca-Cola Femsa, S.A.B. de C.V. had a gross margin of 46.30% for the quarter that ended in Dec. 2013 => 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.

Coca-Cola Femsa, S.A.B. de C.V. Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Jun13Dec13
Gross_Profit 2,5132,5133,0602,8153,7333,9514,2245,40605,516

Coca-Cola Femsa, S.A.B. de C.V. Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
Gross_Profit 1,0351,2731,1651,2501,3171,5471,2741,3871,3531,620
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