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Viacom Inc (NAS:VIAB)
Gross Profit
$6,400 Mil (TTM As of Sep. 2015)

Viacom Inc's gross profit for the three months ended in Sep. 2015 was $1,851 Mil. Viacom Inc's gross profit for the trailing twelve months (TTM) ended in Sep. 2015 was $6,400 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Viacom Inc's gross profit for the three months ended in Sep. 2015 was $1,851 Mil. Viacom Inc's revenue for the three months ended in Sep. 2015 was $3,788 Mil. Therefore, Viacom Inc's Gross Margin for the quarter that ended in Sep. 2015 was 48.86%.

Viacom Inc had a gross margin of 48.86% for the quarter that ended in Sep. 2015 => Durable competitive advantage

During the past 13 years, the highest Gross Margin of Viacom Inc was 52.54%. The lowest was 39.92%. And the median was 47.75%.


Definition

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

Viacom Inc's Gross Profit for the fiscal year that ended in Sep. 2015 is calculated as

Gross Profit (A: Sep. 2015 )=Revenue - Cost of Goods Sold
=13268 - 6868
=6,400

Viacom Inc's Gross Profit for the quarter that ended in Sep. 2015 is calculated as

Gross Profit (Q: Sep. 2015 )=Revenue - Cost of Goods Sold
=3788 - 1937
=1,851

Viacom Inc Gross Profit for the trailing twelve months (TTM) ended in Sep. 2015 was 1721 (Dec. 2014 ) + 1022 (Mar. 2015 ) + 1806 (Jun. 2015 ) + 1851 (Sep. 2015 ) = $6,400 Mil.

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

Viacom Inc's Gross Margin for the quarter that ended in Sep. 2015 is calculated as

Gross Margin (Q: Sep. 2015 )=Gross Profit (Q: Sep. 2015 ) / Revenue (Q: Sep. 2015 )
=(Revenue - Cost of Goods Sold) / Revenue
=1,851 / 3788
=48.86 %

* 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

Viacom Inc had a gross margin of 48.86% for the quarter that ended in Sep. 2015 => 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.

Viacom Inc Annual Data

Dec06Dec07Dec08Dec09Sep10Sep11Sep12Sep13Sep14Sep15
Gross_Profit 5,3985,9925,8386,0326,4467,0466,8946,9957,2416,400

Viacom Inc Quarterly Data

Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15
Gross_Profit 1,8482,0001,7231,6361,8562,0261,7211,0221,8061,851
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