Switch to:
Symantec Corp (NAS:SYMC)
Gross Profit
$5,544 Mil (TTM As of Jun. 2014)

Symantec Corp's gross profit for the three months ended in Jun. 2014 was $1,426 Mil. Symantec Corp's gross profit for the trailing twelve months (TTM) ended in Jun. 2014 was $5,544 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Symantec Corp's gross profit for the three months ended in Jun. 2014 was $1,426 Mil. Symantec Corp's revenue for the three months ended in Jun. 2014 was $1,735 Mil. Therefore, Symantec Corp's Gross Margin for the quarter that ended in Jun. 2014 was 82.19%.

Symantec Corp had a gross margin of 82.19% for the quarter that ended in Jun. 2014 => Durable competitive advantage

During the past 13 years, the highest Gross Margin of Symantec Corp was 88.73%. The lowest was 76.30%. And the median was 82.79%.


Definition

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

Symantec Corp's Gross Profit for the fiscal year that ended in Mar. 2014 is calculated as

Gross Profit (A: Mar. 2014 )=Revenue - Cost of Goods Sold
=6676 - 1149
=5,527

Symantec Corp's Gross Profit for the quarter that ended in Jun. 2014 is calculated as

Gross Profit (Q: Jun. 2014 )=Revenue - Cost of Goods Sold
=1735 - 309
=1,426

Symantec Corp Gross Profit for the trailing twelve months (TTM) ended in Jun. 2014 was 1353 (Sep. 2013 ) + 1422 (Dec. 2013 ) + 1343 (Mar. 2014 ) + 1426 (Jun. 2014 ) = $5,544 Mil.

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

Symantec Corp's Gross Margin for the quarter that ended in Jun. 2014 is calculated as

Gross Margin (Q: Jun. 2014 )=Gross Profit (Q: Jun. 2014 ) / Revenue (Q: Jun. 2014 )
=(Revenue - Cost of Goods Sold) / Revenue
=1,426 / 1735
=82.19 %

* 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

Symantec Corp had a gross margin of 82.19% for the quarter that ended in Jun. 2014 => 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.

Symantec Corp Annual Data

Mar05Mar06Mar07Mar08Mar09Mar10Mar11Mar12Mar13Mar14
Gross_Profit 2,1313,1623,9844,6544,9234,8805,1455,6485,7315,527

Symantec Corp Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
Gross_Profit 1,3941,3841,4151,4921,4401,4091,3531,4221,3431,426
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK
Email Hide