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Village Super Market Inc (NAS:VLGEA)
Gross Profit
$401 Mil (TTM As of Apr. 2014)

Village Super Market Inc's gross profit for the three months ended in Apr. 2014 was $100 Mil. Village Super Market Inc's gross profit for the trailing twelve months (TTM) ended in Apr. 2014 was $401 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Village Super Market Inc's gross profit for the three months ended in Apr. 2014 was $100 Mil. Village Super Market Inc's revenue for the three months ended in Apr. 2014 was $373 Mil. Therefore, Village Super Market Inc's Gross Margin for the quarter that ended in Apr. 2014 was 26.96%.

Village Super Market Inc had a gross margin of 26.96% for the quarter that ended in Apr. 2014 => Competition eroding margins

During the past 13 years, the highest Gross Margin of Village Super Market Inc was 27.36%. The lowest was 24.35%. And the median was 25.57%.


Definition

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

Village Super Market Inc's Gross Profit for the fiscal year that ended in Jul. 2013 is calculated as

Gross Profit (A: Jul. 2013 )=Revenue - Cost of Goods Sold
=1476.457 - 1078.696
=398

Village Super Market Inc's Gross Profit for the quarter that ended in Apr. 2014 is calculated as

Gross Profit (Q: Apr. 2014 )=Revenue - Cost of Goods Sold
=372.511 - 272.074
=100

Village Super Market Inc Gross Profit for the trailing twelve months (TTM) ended in Apr. 2014 was 101.889 (Jul. 2013 ) + 93.706 (Oct. 2013 ) + 105.358 (Jan. 2014 ) + 100.437 (Apr. 2014 ) = $401 Mil.

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

Village Super Market Inc's Gross Margin for the quarter that ended in Apr. 2014 is calculated as

Gross Margin (Q: Apr. 2014 )=Gross Profit (Q: Apr. 2014 ) / Revenue (Q: Apr. 2014 )
=(Revenue - Cost of Goods Sold) / Revenue
=100 / 372.511
=26.96 %

* 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

Village Super Market Inc had a gross margin of 26.96% for the quarter that ended in Apr. 2014 => Competition eroding margins


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.

Village Super Market Inc Annual Data

Jul04Jul05Jul06Jul07Jul08Jul09Jul10Jul11Jul12Jul13
Gross_Profit 244257269282305331343350389398

Village Super Market Inc Quarterly Data

Jan12Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14
Gross_Profit 10095101961039710294105100
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