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New York Times Co (NYSE:NYT)
Gross Profit
$961 Mil (TTM As of Dec. 2015)

New York Times Co's gross profit for the three months ended in Dec. 2015 was $288 Mil. New York Times Co's gross profit for the trailing twelve months (TTM) ended in Dec. 2015 was $961 Mil.

Gross Margin is calculated as gross profit divided by its revenue. New York Times Co's gross profit for the three months ended in Dec. 2015 was $288 Mil. New York Times Co's revenue for the three months ended in Dec. 2015 was $445 Mil. Therefore, New York Times Co's Gross Margin for the quarter that ended in Dec. 2015 was 64.84%.

New York Times Co had a gross margin of 64.84% for the quarter that ended in Dec. 2015 => Durable competitive advantage

During the past 13 years, the highest Gross Margin of New York Times Co was 60.88%. The lowest was 53.51%. And the median was 58.99%.


Definition

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

New York Times Co's Gross Profit for the fiscal year that ended in Dec. 2015 is calculated as

Gross Profit (A: Dec. 2015 )=Revenue - Cost of Goods Sold
=1579.215 - 617.812
=961

New York Times Co's Gross Profit for the quarter that ended in Dec. 2015 is calculated as

Gross Profit (Q: Dec. 2015 )=Revenue - Cost of Goods Sold
=444.686 - 156.372
=288

New York Times Co Gross Profit for the trailing twelve months (TTM) ended in Dec. 2015 was 227.603 (Mar. 2015 ) + 230.113 (Jun. 2015 ) + 215.373 (Sep. 2015 ) + 288.314 (Dec. 2015 ) = $961 Mil.

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

New York Times Co's Gross Margin for the quarter that ended in Dec. 2015 is calculated as

Gross Margin (Q: Dec. 2015 )=Gross Profit (Q: Dec. 2015 ) / Revenue (Q: Dec. 2015 )
=(Revenue - Cost of Goods Sold) / Revenue
=288 / 444.686
=64.84 %

* 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

New York Times Co had a gross margin of 64.84% for the quarter that ended in Dec. 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.

New York Times Co Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
Gross_Profit 1,7601,8541,6291,4191,174914944950945961

New York Times Co Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
Gross_Profit 209279231231204279228230215288
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