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Coca-Cola Femsa SAB de CV (NYSE:KOF)
Gross Profit
$5,987 Mil (TTM As of Sep. 2014)

Coca-Cola Femsa SAB de CV's gross profit for the three months ended in Sep. 2014 was $1,480 Mil. Coca-Cola Femsa SAB de CV's gross profit for the trailing twelve months (TTM) ended in Sep. 2014 was $5,987 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Coca-Cola Femsa SAB de CV's gross profit for the three months ended in Sep. 2014 was $1,480 Mil. Coca-Cola Femsa SAB de CV's revenue for the three months ended in Sep. 2014 was $3,156 Mil. Therefore, Coca-Cola Femsa SAB de CV's Gross Margin for the quarter that ended in Sep. 2014 was 46.88%.

Coca-Cola Femsa SAB de CV had a gross margin of 46.88% for the quarter that ended in Sep. 2014 => Durable competitive advantage

During the past 13 years, the highest Gross Margin of Coca-Cola Femsa SAB de CV was 55.60%. The lowest was 44.57%. 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 SAB de CV'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
=11991.6218294 - 6385.54957725
=5,606

Coca-Cola Femsa SAB de CV's Gross Profit for the quarter that ended in Sep. 2014 is calculated as

Gross Profit (Q: Sep. 2014 )=Revenue - Cost of Goods Sold
=3156.37984438 - 1676.81498829
=1,480

Coca-Cola Femsa SAB de CV Gross Profit for the trailing twelve months (TTM) ended in Sep. 2014 was 1646.65641814 (Dec. 2013 ) + 1356.55271735 (Mar. 2014 ) + 1504.47926608 (Jun. 2014 ) + 1479.56485609 (Sep. 2014 ) = $5,987 Mil.

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

Coca-Cola Femsa SAB de CV'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
=1,480 / 3156.37984438
=46.88 %

* 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 SAB de CV had a gross margin of 46.88% 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.

Coca-Cola Femsa SAB de CV Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Gross_Profit 2,2372,4932,5363,0772,9133,7183,8684,1045,3355,606

Coca-Cola Femsa SAB de CV Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
Gross_Profit 1,2001,3141,5271,2441,3261,3461,6471,3571,5041,480
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