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Overstock.com Inc (NAS:OSTK)
Gross Profit
$305 Mil (TTM As of Sep. 2016)

Overstock.com Inc's gross profit for the six months ended in Sep. 2016 was $80 Mil. Overstock.com Inc's gross profit for the trailing twelve months (TTM) ended in Sep. 2016 was $305 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Overstock.com Inc's gross profit for the six months ended in Sep. 2016 was $80 Mil. Overstock.com Inc's revenue for the six months ended in Sep. 2016 was $442 Mil. Therefore, Overstock.com Inc's Gross Margin for the quarter that ended in Sep. 2016 was 18.05%.

Overstock.com Inc had a gross margin of 18.05% for the quarter that ended in Sep. 2016 => No sustainable competitive advantage

During the past 13 years, the highest Gross Margin of Overstock.com Inc was 18.99%. The lowest was 12.03%. And the median was 17.73%.


Definition

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

Overstock.com Inc'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
=1657.838 - 1353.184
=305

Overstock.com Inc's Gross Profit for the quarter that ended in Sep. 2016 is calculated as

Gross Profit (Q: Sep. 2016 )=Revenue - Cost of Goods Sold
=441.564 - 361.848
=80

For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. Overstock.com Inc Gross Profit for the trailing twelve months (TTM) ended in Sep. 2016 was $305 Mil.

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

Overstock.com Inc's Gross Margin for the quarter that ended in Sep. 2016 is calculated as

Gross Margin (Q: Sep. 2016 )=Gross Profit (Q: Sep. 2016 ) / Revenue (Q: Sep. 2016 )
=(Revenue - Cost of Goods Sold) / Revenue
=80 / 441.564
=18.05 %

* 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

Overstock.com Inc had a gross margin of 18.05% for the quarter that ended in Sep. 2016 => No sustainable 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.

Overstock.com Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
Gross_Profit 95128144165190179198248279305

Overstock.com Inc Semi-Annual Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
Gross_Profit 63678575747283777680
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