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China Petroleum & Chemical Corp (NYSE:SNP)
Gross Profit
$80,511 Mil (TTM As of Sep. 2016)

China Petroleum & Chemical Corp's gross profit for the three months ended in Sep. 2016 was $19,820 Mil. China Petroleum & Chemical Corp's gross profit for the trailing twelve months (TTM) ended in Sep. 2016 was $80,511 Mil.

Gross Margin is calculated as gross profit divided by its revenue. China Petroleum & Chemical Corp's gross profit for the three months ended in Sep. 2016 was $19,820 Mil. China Petroleum & Chemical Corp's revenue for the three months ended in Sep. 2016 was $72,670 Mil. Therefore, China Petroleum & Chemical Corp's Gross Margin for the quarter that ended in Sep. 2016 was 27.27%.

China Petroleum & Chemical Corp had a gross margin of 27.27% for the quarter that ended in Sep. 2016 => Competition eroding margins

During the past 13 years, the highest Gross Margin of China Petroleum & Chemical Corp was 28.60%. The lowest was 13.43%. And the median was 18.65%.


Definition

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

China Petroleum & Chemical 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
=313048.797507 - 231493.696795
=81,555

China Petroleum & Chemical 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
=72670.2347756 - 52850.5891877
=19,820

China Petroleum & Chemical Corp Gross Profit for the trailing twelve months (TTM) ended in Sep. 2016 was 20400.8311237 (Dec. 2015 ) + 19401.9407323 (Mar. 2016 ) + 20888.1199539 (Jun. 2016 ) + 19819.6455878 (Sep. 2016 ) = $80,511 Mil.

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

China Petroleum & Chemical 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
=19,820 / 72670.2347756
=27.27 %

* 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

China Petroleum & Chemical Corp had a gross margin of 27.27% for the quarter that ended in Sep. 2016 => Competition eroding margins


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.

China Petroleum & Chemical Corp Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
Gross_Profit 25,45930,27829,28751,83763,92575,30577,78783,71079,42381,555

China Petroleum & Chemical Corp Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
Gross_Profit 21,17920,75717,40719,13024,30119,51420,40119,40220,88819,820
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