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Costco Wholesale Corp  (NAS:COST) Gross Profit: $19,092 Mil (TTM As of Feb. 2019)

Costco Wholesale Corp's gross profit for the three months ended in Feb. 2019 was $4,676 Mil. Costco Wholesale Corp's gross profit for the trailing twelve months (TTM) ended in Feb. 2019 was $19,092 Mil.

Gross Margin % is calculated as gross profit divided by its revenue. Costco Wholesale Corp's gross profit for the three months ended in Feb. 2019 was $4,676 Mil. Costco Wholesale Corp's Revenue for the three months ended in Feb. 2019 was $35,396 Mil. Therefore, Costco Wholesale Corp's Gross Margin % for the quarter that ended in Feb. 2019 was 13.21%.

Costco Wholesale Corp had a gross margin of 13.21% for the quarter that ended in Feb. 2019 => No sustainable competitive advantage

During the past 13 years, the highest Gross Margin % of Costco Wholesale Corp was 13.32%. The lowest was 12.42%. And the median was 12.75%.


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.

Costco Wholesale Corp Annual Data

Aug09 Aug10 Aug11 Aug12 Aug13 Aug14 Aug15 Aug16 Aug17 Aug18
Gross Profit Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 14,182.00 15,134.00 15,818.00 17,143.00 18,424.00

Costco Wholesale Corp Quarterly Data

May14 Aug14 Nov14 Feb15 May15 Aug15 Nov15 Feb16 May16 Aug16 Nov16 Feb17 May17 Aug17 Nov17 Feb18 May18 Aug18 Nov18 Feb19
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 4,262.00 4,230.00 5,740.00 4,446.00 4,676.00

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.


Costco Wholesale Corp Distribution

* The bar in red indicates where Costco Wholesale Corp's Gross Profit falls into.



Calculation

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

Costco Wholesale Corp's Gross Profit for the fiscal year that ended in Aug. 2018 is calculated as

Gross Profit (A: Aug. 2018 )=Revenue - Cost of Goods Sold
=141576 - 123152
=18,424

Costco Wholesale Corp's Gross Profit for the quarter that ended in Feb. 2019 is calculated as

Gross Profit (Q: Feb. 2019 )=Revenue - Cost of Goods Sold
=35396 - 30720
=4,676

Gross Profit for the trailing twelve months (TTM) ended in Feb. 2019 was 4230 (May. 2018 ) + 5740 (Aug. 2018 ) + 4446 (Nov. 2018 ) + 4676 (Feb. 2019 ) = $19,092 Mil.

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

Costco Wholesale Corp's Gross Margin % for the quarter that ended in Feb. 2019 is calculated as

Gross Margin % (Q: Feb. 2019 )=Gross Profit (Q: Feb. 2019 ) / Revenue (Q: Feb. 2019 )
=(Revenue - Cost of Goods Sold) / Revenue
=4,676 / 35396
=13.21 %

* 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

Costco Wholesale Corp had a gross margin of 13.21% for the quarter that ended in Feb. 2019 => No sustainable competitive advantage


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