Market Cap : 8.72 B | Enterprise Value : 10.02 B | PE Ratio : 11.57 | PB Ratio : 2.34 |
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Gold Fields's gross profit for the six months ended in Dec. 2020 was $1,003 Mil. Gold Fields's gross profit for the trailing twelve months (TTM) ended in Dec. 2020 was $1,637 Mil.
Gross Margin % is calculated as gross profit divided by its revenue. Gold Fields's gross profit for the six months ended in Dec. 2020 was $1,003 Mil. Gold Fields's Revenue for the six months ended in Dec. 2020 was $2,138 Mil. Therefore, Gold Fields's Gross Margin % for the quarter that ended in Dec. 2020 was 46.90%.
Gold Fields had a gross margin of 46.90% for the quarter that ended in Dec. 2020 => Durable competitive advantage
During the past 13 years, the highest Gross Margin % of Gold Fields was 50.34%. The lowest was 15.96%. And the median was 25.50%.
* All numbers are in millions except for per share data and ratio. All numbers are indicated in the company's associated stock exchange currency.
* The bar in red indicates where Gold Fields's Gross Profit falls into.
Gross Profit is the different between the sale prices and the cost of buying or producing the goods.
Gold Fields's Gross Profit for the fiscal year that ended in Dec. 2020 is calculated as
Gross Profit (A: Dec. 2020 ) | = | Revenue | - | Cost of Goods Sold |
= | 3892.1 | - | 2255.4 | |
= | 1,637 |
Gold Fields's Gross Profit for the quarter that ended in Dec. 2020 is calculated as
Gross Profit (Q: Dec. 2020 ) | = | Revenue | - | Cost of Goods Sold |
= | 2137.8 | - | 1135.1 | |
= | 1,003 |
For stock reported semi-annually, GuruFocus uses latest annual data as the TTM data. Gross Profit for the trailing twelve months (TTM) ended in Dec. 2020 was $1,637 Mil.
Gross Profit is the numerator in the calculation of Gross Margin.
Gold Fields's Gross Margin % for the quarter that ended in Dec. 2020 is calculated as
Gross Margin % (Q: Dec. 2020 ) | = | Gross Profit (Q: Dec. 2020 ) | / | Revenue (Q: Dec. 2020 ) |
= | (Revenue - Cost of Goods Sold) | / | Revenue | |
= | 1,003 | / | 2137.8 | |
= | 46.90 % |
* All numbers are in millions except for per share data and ratio. All numbers 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.
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
Gold Fields had a gross margin of 46.90% for the quarter that ended in Dec. 2020 => Durable competitive advantage
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