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SUPERVALU Inc (NYSE:SVU)
Gross Profit
$2,488 Mil (TTM As of May. 2014)

SUPERVALU Inc's gross profit for the three months ended in May. 2014 was $752 Mil. SUPERVALU Inc's gross profit for the trailing twelve months (TTM) ended in May. 2014 was $2,488 Mil.

Gross Margin is calculated as gross profit divided by its revenue. SUPERVALU Inc's gross profit for the three months ended in May. 2014 was $752 Mil. SUPERVALU Inc's revenue for the three months ended in May. 2014 was $5,234 Mil. Therefore, SUPERVALU Inc's Gross Margin for the quarter that ended in May. 2014 was 14.37%.

SUPERVALU Inc had a gross margin of 14.37% for the quarter that ended in May. 2014 => No sustainable competitive advantage

During the past 13 years, the highest Gross Margin of SUPERVALU Inc was 22.94%. The lowest was 10.40%. And the median was 13.73%.

Warning Sign:

SUPERVALU Inc gross margin has been in long term decline. The average rate of decline per year is -9.9%.


Definition

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

SUPERVALU Inc's Gross Profit for the fiscal year that ended in Feb. 2014 is calculated as

Gross Profit (A: Feb. 2014 )=Revenue - Cost of Goods Sold
=17155 - 14623
=2,532

SUPERVALU Inc's Gross Profit for the quarter that ended in May. 2014 is calculated as

Gross Profit (Q: May. 2014 )=Revenue - Cost of Goods Sold
=5234 - 4482
=752

SUPERVALU Inc Gross Profit for the trailing twelve months (TTM) ended in May. 2014 was 577 (Aug. 2013 ) + 569 (Nov. 2013 ) + 590 (Feb. 2014 ) + 752 (May. 2014 ) = $2,488 Mil.

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

SUPERVALU Inc's Gross Margin for the quarter that ended in May. 2014 is calculated as

Gross Margin (Q: May. 2014 )=Gross Profit (Q: May. 2014 ) / Revenue (Q: May. 2014 )
=(Revenue - Cost of Goods Sold) / Revenue
=752 / 5234
=14.37 %

* 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

SUPERVALU Inc had a gross margin of 14.37% for the quarter that ended in May. 2014 => 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 own currency.

SUPERVALU Inc Annual Data

Feb05Feb06Feb07Feb08Feb09Feb10Feb11Feb12Feb13Feb14
Gross_Profit 2,8622,8878,13910,10510,1139,1532,4002,4102,3362,532

SUPERVALU Inc Quarterly Data

Feb12May12Aug12Nov12Feb13May13Aug13Nov13Feb14May14
Gross_Profit -3,731707529530557795577569590752
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