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Gazprom PJSC (OTCPK:OGZPY)
Gross Profit
$59,508 Mil (TTM As of Jun. 2016)

Gazprom PJSC's gross profit for the three months ended in Jun. 2016 was $12,204 Mil. Gazprom PJSC's gross profit for the trailing twelve months (TTM) ended in Jun. 2016 was $59,508 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Gazprom PJSC's gross profit for the three months ended in Jun. 2016 was $12,204 Mil. Gazprom PJSC's revenue for the three months ended in Jun. 2016 was $20,416 Mil. Therefore, Gazprom PJSC's Gross Margin for the quarter that ended in Jun. 2016 was 59.78%.

Gazprom PJSC had a gross margin of 59.78% for the quarter that ended in Jun. 2016 => Durable competitive advantage

During the past 12 years, the highest Gross Margin of Gazprom PJSC was 100.00%. The lowest was 39.68%. And the median was 76.66%.

Warning Sign:

Gazprom PJSC gross margin has been in long term decline. The average rate of decline per year is -6.9%.


Definition

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

Gazprom PJSC'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
=95163.2403635 - 32521.2315888
=62,642

Gazprom PJSC's Gross Profit for the quarter that ended in Jun. 2016 is calculated as

Gross Profit (Q: Jun. 2016 )=Revenue - Cost of Goods Sold
=20415.5076923 - 8211.04615385
=12,204

Gazprom PJSC Gross Profit for the trailing twelve months (TTM) ended in Jun. 2016 was 12521.8461538 (Sep. 2015 ) + 17328.1846154 (Dec. 2015 ) + 17453.3538462 (Mar. 2016 ) + 12204.4615385 (Jun. 2016 ) = $59,508 Mil.

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

Gazprom PJSC's Gross Margin for the quarter that ended in Jun. 2016 is calculated as

Gross Margin (Q: Jun. 2016 )=Gross Profit (Q: Jun. 2016 ) / Revenue (Q: Jun. 2016 )
=(Revenue - Cost of Goods Sold) / Revenue
=12,204 / 20415.5076923
=59.78 %

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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

Gazprom PJSC had a gross margin of 59.78% for the quarter that ended in Jun. 2016 => 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 local exchange's currency.

Gazprom PJSC Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
Gross_Profit 13,70837,97051,48146,86656,36256,07456,86458,98160,13562,642

Gazprom PJSC Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
Gross_Profit 17,86720,23410,74416,87118,72212,93312,52217,32817,45312,204
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