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Nu Skin Enterprises, Inc. (NYSE:NUS)
Gross Profit
$2,671 Mil (TTM As of Dec. 2013)

Nu Skin Enterprises, Inc.'s gross profit for the three months ended in Dec. 2013 was $851 Mil. Nu Skin Enterprises, Inc.'s gross profit for the trailing twelve months (TTM) ended in Dec. 2013 was $2,671 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Nu Skin Enterprises, Inc.'s gross profit for the three months ended in Dec. 2013 was $851 Mil. Nu Skin Enterprises, Inc.'s revenue for the three months ended in Dec. 2013 was $1,016 Mil. Therefore, Nu Skin Enterprises, Inc.'s Gross Margin for the quarter that ended in Dec. 2013 was 83.79%.

Nu Skin Enterprises, Inc. had a gross margin of 83.79% for the quarter that ended in Dec. 2013 => Durable competitive advantage

During the past 13 years, the highest Gross Margin of Nu Skin Enterprises, Inc. was 87.30%. The lowest was 73.62%. And the median was 82.10%.


Definition

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

Nu Skin Enterprises, Inc.'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
=3176.718 - 505.806
=2,671

Nu Skin Enterprises, Inc.'s Gross Profit for the quarter that ended in Dec. 2013 is calculated as

Gross Profit (Q: Dec. 2013 )=Revenue - Cost of Goods Sold
=1016.085 - 164.672
=851

Nu Skin Enterprises, Inc. Gross Profit for the trailing twelve months (TTM) ended in Dec. 2013 was 460.049 (Mar. 2013 ) + 571.654 (Jun. 2013 ) + 787.796 (Sep. 2013 ) + 851.413 (Dec. 2013 ) = $2,671 Mil.

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

Nu Skin Enterprises, Inc.'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
=851 / 1016.085
=83.79 %

* 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

Nu Skin Enterprises, Inc. had a gross margin of 83.79% 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.

Nu Skin Enterprises, Inc. Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Gross_Profit 9479759209481,0191,0871,2651,4211,7792,671

Nu Skin Enterprises, Inc. Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
Gross_Profit 358415386498439456460572788851
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