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Apollo Education Group Inc  (NAS:APOL) Gross Profit: $946 Mil (TTM As of Nov. 2016)

Apollo Education Group Inc's gross profit for the three months ended in Nov. 2016 was $236 Mil. Apollo Education Group Inc's gross profit for the trailing twelve months (TTM) ended in Nov. 2016 was $946 Mil.

Gross Margin % is calculated as gross profit divided by its revenue. Apollo Education Group Inc's gross profit for the three months ended in Nov. 2016 was $236 Mil. Apollo Education Group Inc's Revenue for the three months ended in Nov. 2016 was $484 Mil. Therefore, Apollo Education Group Inc's Gross Margin % for the quarter that ended in Nov. 2016 was 48.66%.

Apollo Education Group Inc had a gross margin of 48.66% for the quarter that ended in Nov. 2016 => Durable competitive advantage


Historical Data

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

* Premium members only.

Apollo Education Group Inc Annual Data

Aug07 Aug08 Aug09 Aug10 Aug11 Aug12 Aug13 Aug14 Aug15 Aug16
Gross Profit Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2,416.59 2,070.37 1,713.67 1,358.74 1,004.70

Apollo Education Group Inc Quarterly Data

Feb12 May12 Aug12 Nov12 Feb13 May13 Aug13 Nov13 Feb14 May14 Aug14 Nov14 Feb15 May15 Aug15 Nov15 Feb16 May16 Aug16 Nov16
Gross Profit Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 294.69 194.71 283.52 231.78 235.75

Competitive Comparison
* 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.


Calculation

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

Apollo Education Group Inc's Gross Profit for the fiscal year that ended in Aug. 2016 is calculated as

Gross Profit (A: Aug. 2016 )=Revenue - Cost of Goods Sold
=2101.85 - 1097.155
=1,005

Apollo Education Group Inc's Gross Profit for the quarter that ended in Nov. 2016 is calculated as

Gross Profit (Q: Nov. 2016 )=Revenue - Cost of Goods Sold
=484.499 - 248.753
=236

Gross Profit for the trailing twelve months (TTM) ended in Nov. 2016 was 194.708 (Feb. 2016 ) + 283.516 (May. 2016 ) + 231.777 (Aug. 20 ) + 235.746 (Nov. 2016 ) = $946 Mil.

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

Apollo Education Group Inc's Gross Margin % for the quarter that ended in Nov. 2016 is calculated as

Gross Margin % (Q: Nov. 2016 )=Gross Profit (Q: Nov. 2016 ) / Revenue (Q: Nov. 2016 )
=(Revenue - Cost of Goods Sold) / Revenue
=236 / 484.499
=48.66 %

* 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

Apollo Education Group Inc had a gross margin of 48.66% for the quarter that ended in Nov. 2016 => Durable competitive advantage


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