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Symantec Corp (NAS:SYMC)
Gross Profit
$5,624 Mil (TTM As of Dec. 2013)

Symantec Corp's gross profit for the three months ended in Dec. 2013 was $1,422 Mil. Symantec Corp's gross profit for the trailing twelve months (TTM) ended in Dec. 2013 was $5,624 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Symantec Corp's gross profit for the three months ended in Dec. 2013 was $1,422 Mil. Symantec Corp's revenue for the three months ended in Dec. 2013 was $1,705 Mil. Therefore, Symantec Corp's Gross Margin for the quarter that ended in Dec. 2013 was 83.40%.

Symantec Corp had a gross margin of 83.40% for the quarter that ended in Dec. 2013 => 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 82.99%.


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. 2013 is calculated as

Gross Profit (A: Mar. 2013 )=Revenue - Cost of Goods Sold
=6906 - 1175
=5,731

Symantec Corp's Gross Profit for the quarter that ended in Dec. 2013 is calculated as

Gross Profit (Q: Dec. 2013 )=Revenue - Cost of Goods Sold
=1705 - 283
=1,422

Symantec Corp Gross Profit for the trailing twelve months (TTM) ended in Dec. 2013 was 1440 (Mar. 2013 ) + 1409 (Jun. 2013 ) + 1353 (Sep. 2013 ) + 1422 (Dec. 2013 ) = $5,624 Mil.

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

Symantec Corp'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
=1,422 / 1705
=83.40 %

* 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 83.40% 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.

Symantec Corp Annual Data

Mar04Mar05Mar06Mar07Mar08Mar09Mar10Mar11Mar12Mar13
Gross_Profit 1,5432,1313,1623,9844,6544,9234,8805,1455,6485,731

Symantec Corp Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
Gross_Profit 1,4161,4441,3941,3841,4151,4921,4401,4091,3531,422
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