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Media General Inc (NYSE:MEG)
Gross Profit
$686 Mil (TTM As of Sep. 2015)

Media General Inc's gross profit for the three months ended in Sep. 2015 was $178 Mil. Media General Inc's gross profit for the trailing twelve months (TTM) ended in Sep. 2015 was $686 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Media General Inc's gross profit for the three months ended in Sep. 2015 was $178 Mil. Media General Inc's revenue for the three months ended in Sep. 2015 was $322 Mil. Therefore, Media General Inc's Gross Margin for the quarter that ended in Sep. 2015 was 55.40%.

Media General Inc had a gross margin of 55.40% for the quarter that ended in Sep. 2015 => Durable competitive advantage

During the past 13 years, the highest Gross Margin of Media General Inc was 76.46%. The lowest was 54.72%. And the median was 63.00%.


Definition

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

Media General 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
=674.963 - 221.914
=453

Media General 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
=321.736 - 143.492
=178

Media General Inc Gross Profit for the trailing twelve months (TTM) ended in Sep. 2015 was 150.908 (Dec. 2014 ) + 170.858 (Mar. 2015 ) + 186.354 (Jun. 2015 ) + 178.244 (Sep. 2015 ) = $686 Mil.

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

Media General 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
=178 / 321.736
=55.40 %

* 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

Media General Inc had a gross margin of 55.40% 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.

Media General Inc Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
Gross_Profit 495551492604503187169159175453

Media General Inc Quarterly Data

Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15
Gross_Profit 36337493103106151171186178
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