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SINA Corp (NAS:SINA)
Gross Profit
\$625 Mil (TTM As of Sep. 2016)

SINA Corp's gross profit for the three months ended in Sep. 2016 was \$185 Mil. SINA Corp's gross profit for the trailing twelve months (TTM) ended in Sep. 2016 was \$625 Mil.

Gross Margin is calculated as gross profit divided by its revenue. SINA Corp's gross profit for the three months ended in Sep. 2016 was \$185 Mil. SINA Corp's revenue for the three months ended in Sep. 2016 was \$275 Mil. Therefore, SINA Corp's Gross Margin for the quarter that ended in Sep. 2016 was 67.14%.

SINA Corp had a gross margin of 67.14% for the quarter that ended in Sep. 2016 => Durable competitive advantage

During the past 13 years, the highest Gross Margin of SINA Corp was 65.59%. The lowest was 53.16%. And the median was 59.28%.

Definition

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

SINA Corp'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 = 880.669 - 335.38 = 545

SINA Corp's Gross Profit for the quarter that ended in Sep. 2016 is calculated as

 Gross Profit (Q: Sep. 2016 ) = Revenue - Cost of Goods Sold = 274.875 - 90.327 = 185

SINA Corp Gross Profit for the trailing twelve months (TTM) ended in Sep. 2016 was 167.136 (Dec. 2015 ) + 117.781 (Mar. 2016 ) + 155.045 (Jun. 2016 ) + 184.548 (Sep. 2016 ) = \$625 Mil.

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

SINA Corp'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 = 185 / 274.875 = 67.14 %

* 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

SINA Corp had a gross margin of 67.14% for the quarter that ended in Sep. 2016 => Durable competitive advantage

Related Terms

Historical Data

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

SINA Corp Annual Data

 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Gross_Profit 151 219 200 234 267 281 394 478 545 676

SINA Corp Quarterly Data

 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Gross_Profit 125 137 107 128 143 167 118 155 185 219
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