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New York Times Co (NYSE:NYT)
Gross Profit
$940 Mil (TTM As of Jun. 2015)

New York Times Co's gross profit for the three months ended in Jun. 2015 was $230 Mil. New York Times Co's gross profit for the trailing twelve months (TTM) ended in Jun. 2015 was $940 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 Jun. 2015 was $230 Mil. New York Times Co's revenue for the three months ended in Jun. 2015 was $383 Mil. Therefore, New York Times Co's Gross Margin for the quarter that ended in Jun. 2015 was 60.10%.

New York Times Co had a gross margin of 60.10% for the quarter that ended in Jun. 2015 => Durable competitive advantage

During the past 13 years, the highest Gross Margin of New York Times Co was 60.25%. The lowest was 51.63%. And the median was 56.54%.


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 Mar. 2014 is calculated as

Gross Profit (A: Mar. 2014 )=Revenue - Cost of Goods Sold
=1586.963 - 629.162
=958

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

Gross Profit (Q: Jun. 2015 )=Revenue - Cost of Goods Sold
=382.886 - 152.773
=230

New York Times Co Gross Profit for the trailing twelve months (TTM) ended in Jun. 2015 was 203.541 (Sep. 2014 ) + 278.792 (Dec. 2014 ) + 227.603 (Mar. 2015 ) + 230.113 (Jun. 2015 ) = $940 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 Jun. 2015 is calculated as

Gross Margin (Q: Jun. 2015 )=Gross Profit (Q: Jun. 2015 ) / Revenue (Q: Jun. 2015 )
=(Revenue - Cost of Goods Sold) / Revenue
=230 / 382.886
=60.10 %

* 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 60.10% for the quarter that ended in Jun. 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

Mar05Mar06Mar07Mar08Mar09Mar10Mar11Mar12Mar13Mar14
Gross_Profit 1,8221,8421,7591,8201,5451,4491,4081,3661,155958

New York Times Co Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
Gross_Profit 224238209279231231204279228230
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