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Banco Santander SA (NYSE:SAN)
Gross Profit
$0 Mil (TTM As of Dec. 2013)

Banco Santander SA's gross profit for the three months ended in Dec. 2013 was $0 Mil. Banco Santander SA's gross profit for the trailing twelve months (TTM) ended in Dec. 2013 was $0 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Banco Santander SA's gross profit for the three months ended in Dec. 2013 was $0 Mil. Banco Santander SA's revenue for the three months ended in Dec. 2013 was $12,813 Mil. Therefore, Banco Santander SA's Gross Margin for the quarter that ended in Dec. 2013 was 100.00%.

Banco Santander SA had a gross margin of 100.00% for the quarter that ended in Dec. 2013 => Durable competitive advantage


Definition

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

Banco Santander SA'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
=54158.0381471 - 0
=54,158

Banco Santander SA's Gross Profit for the quarter that ended in Dec. 2013 is calculated as

Gross Profit (Q: Dec. 2013 )=Revenue - Cost of Goods Sold
=12813.3514986 - 0
=12,813

Banco Santander SA Gross Profit for the trailing twelve months (TTM) ended in Dec. 2013 was 0 (Dec. 2012 ) + 0 (Jun. 2013 ) + 0 (Sep. 2013 ) + 0 (Dec. 2013 ) = $0 Mil.

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

Banco Santander SA'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
=12,813 / 12813.3514986
=100.00 %

* 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

Banco Santander SA had a gross margin of 100.00% 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.

Banco Santander SA Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Jun13Dec13
Gross_Profit 0000000000

Banco Santander SA Quarterly Data

Mar11Jun11Sep11Dec11Jun12Sep12Dec12Jun13Sep13Dec13
Gross_Profit 0000000000
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