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Gross Margin % is calculated as gross profit divided by its revenue. Time Warner's Gross Profit for the three months ended in Mar. 2018 was $3,279 Mil. Time Warner's Revenue for the three months ended in Mar. 2018 was $7,996 Mil. Therefore, Time Warner's Gross Margin % for the quarter that ended in Mar. 2018 was 41.01%.
The historical rank and industry rank for Time Warner's Gross Margin % or its related term are showing as below:
Time Warner had a gross margin of 41.01% for the quarter that ended in Mar. 2018 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Time Warner was 0.00% per year.
The historical data trend for Time Warner's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Time Warner Annual Data | |||||||||||||||||||||
Trend | Dec08 | Dec09 | Dec10 | Dec11 | Dec12 | Dec13 | Dec14 | Dec15 | Dec16 | Dec17 | |||||||||||
Gross Margin % | Get a 7-Day Free Trial | 43.56 | 41.98 | 42.55 | 44.14 | 43.57 |
Time Warner Quarterly Data | ||||||||||||||||||||
Jun13 | Sep13 | Dec13 | Mar14 | Jun14 | Sep14 | Dec14 | Mar15 | Jun15 | Sep15 | Dec15 | Mar16 | Jun16 | Sep16 | Dec16 | Mar17 | Jun17 | Sep17 | Dec17 | Mar18 | |
Gross Margin % | Get a 7-Day Free Trial | 43.99 | 42.63 | 48.28 | 39.83 | 41.01 |
For the Broadcasting subindustry, Time Warner's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
For the Media - Diversified industry and Communication Services sector, Time Warner's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Time Warner's Gross Margin % falls into.
Gross Margin is the percentage of Gross Profit out of sales or Revenue.
Time Warner's Gross Margin for the fiscal year that ended in Dec. 2017 is calculated as
Gross Margin % (A: Dec. 2017 ) | = | Gross Profit (A: Dec. 2017 ) | / | Revenue (A: Dec. 2017 ) |
= | 13624 | / | 31271 | |
= | (Revenue - Cost of Goods Sold) | / | Revenue | |
= | (31271 - 17647) | / | 31271 | |
= | 43.57 % |
Time Warner's Gross Margin for the quarter that ended in Mar. 2018 is calculated as
Gross Margin % (Q: Mar. 2018 ) | = | Gross Profit (Q: Mar. 2018 ) | / | Revenue (Q: Mar. 2018 ) |
= | 3279 | / | 7996 | |
= | (Revenue - Cost of Goods Sold) | / | Revenue | |
= | (7996 - 4717) | / | 7996 | |
= | 41.01 % |
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange 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.
Time Warner (NYSE:TWX) Gross Margin % 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
Time Warner had a gross margin of 41.01% for the quarter that ended in Mar. 2018 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Thank you for viewing the detailed overview of Time Warner's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Fred Hassan | director | C/O CARET GROUP,, 1100 HOLLAND DR., BOCA RATON FL 33487 |
Douglas Edward Horne | officer: SVP and Controller | ONE TIME WARNER CENTER, NEW YORK NY 10019 |
Gary L Ginsberg | officer: Executive Vice President | TIME WARNER INC., ONE TIME WARNER CENTER, NEW YORK NY 10019 |
Olaf Olafsson | officer: Executive Vice President | C/O TIME WARNER INC. ONE TIME WARNER CENTER NEW YORK NY 10019 |
Paul Wachter | director | C/O TIME WARNER INC., ONE TIME WARNER CENTER, NEW YORK NY 10019 |
Robert C Clark | director | C/O TIME WARNER INC., ONE TIME WARNER CENTER, NEW YORK NY 10019 |
William P Barr | director | C/O TIME WARNER INC., ONE TIME WARNER CENTER, NEW YORK NY 10019 |
Howard M Averill | officer: EVP and CFO | CAMPBELL SOUP COMPANY, ONE CAMPBELL PLACE, CAMDEN NJ 08103 |
Paul T Cappuccio | officer: EVP and General Counsel | TIME WARNER INC., ONE TIME WARNER CENTER, NEW YORK NY 10019 |
Carlos M Gutierrez | director | 5 GREENWAY PLAZA, STE 110, HOUSTON TX 77046 |
Carol A Melton | officer: Executive Vice President | 4445 WILLARD AVENUE, SUITE 400, CHEVY CHASE MD 20815 |
Jessica P Einhorn | director | C/O BLACKROCK, INC., 55 EAST 52ND STREET, NEW YORK NY 10055 |
Mathias Dopfner | director | C/O TIME WARNER INC., ONE TIME WARNER CENTER, NEW YORK NY 10019 |
Deborah C Wright | director | CARVER BANCORP, INC, 75 W. 125TH STREET, NEW YORK NY 10027 |
James L Barksdale | director | C/O TIME WARNER INC., ONE TIME WARNER CENTER, NEW YORK NY 10019 |
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