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UNS Energy Corp (NYSE:UNS)
Gross Profit
\$928 Mil (TTM As of Jun. 2014)

UNS Energy Corp's gross profit for the three months ended in Jun. 2014 was \$240 Mil. UNS Energy Corp's gross profit for the trailing twelve months (TTM) ended in Jun. 2014 was \$928 Mil.

Gross Margin is calculated as gross profit divided by its revenue. UNS Energy Corp's gross profit for the three months ended in Jun. 2014 was \$240 Mil. UNS Energy Corp's revenue for the three months ended in Jun. 2014 was \$387 Mil. Therefore, UNS Energy Corp's Gross Margin for the quarter that ended in Jun. 2014 was 61.95%.

UNS Energy Corp had a gross margin of 61.95% for the quarter that ended in Jun. 2014 => Durable competitive advantage

Definition

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

UNS Energy Corp's Gross Profit for the fiscal year that ended in Dec. 2013 is calculated as

 Gross Profit (A: Dec. 2013 ) = Revenue - Cost of Goods Sold = 1484.56 - 591.51 = 893

UNS Energy 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 = 386.606 - 147.103 = 240

UNS Energy Corp Gross Profit for the trailing twelve months (TTM) ended in Jun. 2014 was 279.97 (Sep. 2013 ) + 210.238 (Dec. 2013 ) + 198.166 (Mar. 2014 ) + 239.503 (Jun. 2014 ) = \$928 Mil.

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

UNS Energy 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 = 240 / 386.606 = 61.95 %

* 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

UNS Energy Corp had a gross margin of 61.95% for the quarter that ended in Jun. 2014 => Durable competitive advantage

Related Terms

Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

UNS Energy Corp Annual Data

 Dec04 Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Gross_Profit 706 679 730 737 668 808 870 875 862 893

UNS Energy Corp Quarterly Data

 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Gross_Profit 185 216 262 200 188 214 280 210 198 240
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