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John Wiley & Sons Inc (NYSE:JW.A)
Gross Profit
$1,250 Mil (TTM As of Jan. 2017)

John Wiley & Sons Inc's gross profit for the three months ended in Jan. 2017 was $320 Mil. John Wiley & Sons Inc's gross profit for the trailing twelve months (TTM) ended in Jan. 2017 was $1,250 Mil.

Gross Margin is calculated as gross profit divided by its revenue. John Wiley & Sons Inc's gross profit for the three months ended in Jan. 2017 was $320 Mil. John Wiley & Sons Inc's revenue for the three months ended in Jan. 2017 was $436 Mil. Therefore, John Wiley & Sons Inc's Gross Margin for the quarter that ended in Jan. 2017 was 73.33%.

John Wiley & Sons Inc had a gross margin of 73.33% for the quarter that ended in Jan. 2017 => Durable competitive advantage

During the past 13 years, the highest Gross Margin of John Wiley & Sons Inc was 73.50%. The lowest was 65.91%. And the median was 69.30%.


Definition

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

John Wiley & Sons Inc's Gross Profit for the fiscal year that ended in Apr. 2016 is calculated as

Gross Profit (A: Apr. 2016 )=Revenue - Cost of Goods Sold
=1727.037 - 465.917
=1,261

John Wiley & Sons Inc's Gross Profit for the quarter that ended in Jan. 2017 is calculated as

Gross Profit (Q: Jan. 2017 )=Revenue - Cost of Goods Sold
=436.456 - 116.405
=320

John Wiley & Sons Inc Gross Profit for the trailing twelve months (TTM) ended in Jan. 2017 was 324.741 (Apr. 2016 ) + 291.116 (Jul. 2016 ) + 314.014 (Oct. 2016 ) + 320.051 (Jan. 2017 ) = $1,250 Mil.

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

John Wiley & Sons Inc's Gross Margin for the quarter that ended in Jan. 2017 is calculated as

Gross Margin (Q: Jan. 2017 )=Gross Profit (Q: Jan. 2017 ) / Revenue (Q: Jan. 2017 )
=(Revenue - Cost of Goods Sold) / Revenue
=320 / 436.456
=73.33 %

* 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

John Wiley & Sons Inc had a gross margin of 73.33% for the quarter that ended in Jan. 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.

John Wiley & Sons Inc Annual Data

Apr07Apr08Apr09Apr10Apr11Apr12Apr13Apr14Apr15Apr16
Gross_Profit 8141,1411,0951,1651,2041,2391,2291,2681,3231,261

John Wiley & Sons Inc Quarterly Data

Oct14Jan15Apr15Jul15Oct15Jan16Apr16Jul16Oct16Jan17
Gross_Profit 342342325303317316325291314320
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