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GuruFocus has detected 6 Warning Signs with Statoil ASA $FRA:DNQA.
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Statoil ASA (FRA:DNQA)
Gross Profit
€16,814 Mil (TTM As of Mar. 2017)

Statoil ASA's gross profit for the three months ended in Mar. 2017 was €6,212 Mil. Statoil ASA's gross profit for the trailing twelve months (TTM) ended in Mar. 2017 was €16,814 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Statoil ASA's gross profit for the three months ended in Mar. 2017 was €6,212 Mil. Statoil ASA's revenue for the three months ended in Mar. 2017 was €14,519 Mil. Therefore, Statoil ASA's Gross Margin for the quarter that ended in Mar. 2017 was 42.79%.

Statoil ASA had a gross margin of 42.79% for the quarter that ended in Mar. 2017 => Durable competitive advantage

During the past 13 years, the highest Gross Margin of Statoil ASA was 55.76%. The lowest was 33.45%. And the median was 48.80%.

Warning Sign:

Statoil ASA gross margin has been in long term decline. The average rate of decline per year is -8.2%.


Definition

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

Statoil ASA's Gross Profit for the fiscal year that ended in Dec. 2016 is calculated as

Gross Profit (A: Dec. 2016 )=Revenue - Cost of Goods Sold
=43485.6384491 - 28941.1318608
=14,545

Statoil ASA's Gross Profit for the quarter that ended in Mar. 2017 is calculated as

Gross Profit (Q: Mar. 2017 )=Revenue - Cost of Goods Sold
=14518.9340813 - 8306.68536699
=6,212

Statoil ASA Gross Profit for the trailing twelve months (TTM) ended in Mar. 2017 was 3225.34709861 (Jun. 2016 ) + 3558.76325403 (Sep. 2016 ) + 3817.42345246 (Dec. 2016 ) + 6212.24871435 (Mar. 2017 ) = €16,814 Mil.

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

Statoil ASA's Gross Margin for the quarter that ended in Mar. 2017 is calculated as

Gross Margin (Q: Mar. 2017 )=Gross Profit (Q: Mar. 2017 ) / Revenue (Q: Mar. 2017 )
=(Revenue - Cost of Goods Sold) / Revenue
=6,212 / 14518.9340813
=42.79 %

* 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

Statoil ASA had a gross margin of 42.79% for the quarter that ended in Mar. 2017 => 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 local exchange's currency.

Statoil ASA Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
Gross_Profit 31,75534,68330,71835,04144,55248,58930,42832,13921,00114,545

Statoil ASA Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
Gross_Profit 8,5415,5436,5784,1174,4743,3213,2253,5593,8176,212
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