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Xilinx Inc (NAS:XLNX)
Gross Profit
\$1,560 Mil (TTM As of Jun. 2016)

Xilinx Inc's gross profit for the three months ended in Jun. 2016 was \$407 Mil. Xilinx Inc's gross profit for the trailing twelve months (TTM) ended in Jun. 2016 was \$1,560 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Xilinx Inc's gross profit for the three months ended in Jun. 2016 was \$407 Mil. Xilinx Inc's revenue for the three months ended in Jun. 2016 was \$575 Mil. Therefore, Xilinx Inc's Gross Margin for the quarter that ended in Jun. 2016 was 70.73%.

Xilinx Inc had a gross margin of 70.73% for the quarter that ended in Jun. 2016 => Durable competitive advantage

During the past 13 years, the highest Gross Margin of Xilinx Inc was 70.18%. The lowest was 61.00%. And the median was 65.17%.

Definition

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

Xilinx Inc's Gross Profit for the fiscal year that ended in Mar. 2016 is calculated as

 Gross Profit (A: Mar. 2016 ) = Revenue - Cost of Goods Sold = 2213.881 - 671.907 = 1,542

Xilinx Inc's Gross Profit for the quarter that ended in Jun. 2016 is calculated as

 Gross Profit (Q: Jun. 2016 ) = Revenue - Cost of Goods Sold = 574.981 - 168.297 = 407

Xilinx Inc Gross Profit for the trailing twelve months (TTM) ended in Jun. 2016 was 369.932 (Sep. 2015 ) + 387.721 (Dec. 2015 ) + 395.267 (Mar. 2016 ) + 406.684 (Jun. 2016 ) = \$1,560 Mil.

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

Xilinx Inc's Gross Margin for the quarter that ended in Jun. 2016 is calculated as

 Gross Margin (Q: Jun. 2016 ) = Gross Profit (Q: Jun. 2016 ) / Revenue (Q: Jun. 2016 ) = (Revenue - Cost of Goods Sold) / Revenue = 407 / 574.981 = 70.73 %

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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

Xilinx Inc had a gross margin of 70.73% for the quarter that ended in Jun. 2016 => Durable competitive advantage

Related Terms

Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Xilinx Inc Annual Data

 Mar07 Mar08 Mar09 Mar10 Mar11 Mar12 Mar13 Mar14 Mar15 Mar16 Gross_Profit 1,124 1,154 1,156 1,162 1,550 1,455 1,431 1,639 1,669 1,542

Xilinx Inc Quarterly Data

 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Gross_Profit 423 435 414 397 389 370 388 395 407 403
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