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Yahoo Japan Corp (OTCPK:YAHOY)
Gross Profit
$2,976 Mil (TTM As of Jun. 2015)

Yahoo Japan Corp's gross profit for the three months ended in Jun. 2015 was $699 Mil. Yahoo Japan Corp's gross profit for the trailing twelve months (TTM) ended in Jun. 2015 was $2,976 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Yahoo Japan Corp's gross profit for the three months ended in Jun. 2015 was $699 Mil. Yahoo Japan Corp's revenue for the three months ended in Jun. 2015 was $894 Mil. Therefore, Yahoo Japan Corp's Gross Margin for the quarter that ended in Jun. 2015 was 78.15%.

Yahoo Japan Corp had a gross margin of 78.15% for the quarter that ended in Jun. 2015 => Durable competitive advantage

During the past 13 years, the highest Gross Margin of Yahoo Japan Corp was 96.01%. The lowest was 71.54%. And the median was 89.76%.

Warning Sign:

Yahoo Japan Corp gross margin has been in long term decline. The average rate of decline per year is -1.7%.


Definition

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

Yahoo Japan Corp's Gross Profit for the fiscal year that ended in Mar. 2015 is calculated as

Gross Profit (A: Mar. 2015 )=Revenue - Cost of Goods Sold
=3559.02470628 - 710.1736375
=2,849

Yahoo Japan Corp's Gross Profit for the quarter that ended in Jun. 2015 is calculated as

Gross Profit (Q: Jun. 2015 )=Revenue - Cost of Goods Sold
=893.770217251 - 195.249542106
=699

Yahoo Japan Corp Gross Profit for the trailing twelve months (TTM) ended in Jun. 2015 was 768.205373574 (Sep. 2014 ) + 699.846551344 (Dec. 2014 ) + 809.181482543 (Mar. 2015 ) + 698.520675145 (Jun. 2015 ) = $2,976 Mil.

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

Yahoo Japan Corp's Gross Margin for the quarter that ended in Jun. 2015 is calculated as

Gross Margin (Q: Jun. 2015 )=Gross Profit (Q: Jun. 2015 ) / Revenue (Q: Jun. 2015 )
=(Revenue - Cost of Goods Sold) / Revenue
=699 / 893.770217251
=78.15 %

* 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

Yahoo Japan Corp had a gross margin of 78.15% for the quarter that ended in Jun. 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.

Yahoo Japan Corp Annual Data

Mar06Mar07Mar08Mar09Mar10Mar11Mar12Mar13Mar14Mar15
Gross_Profit 1,3721,7402,3202,4322,7253,2233,3233,2353,2952,849

Yahoo Japan Corp Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
Gross_Profit 907819831830820788768700809699
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