Market Cap : 46.58 B | Enterprise Value : 113.98 B | P/E (TTM) : 16.39 | P/B : 0.70 |
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Vodafone Group's gross profit for the six months ended in Sep. 2020 was $7,974 Mil. Vodafone Group's gross profit for the trailing twelve months (TTM) ended in Sep. 2020 was $15,792 Mil.
Gross Margin % is calculated as gross profit divided by its revenue. Vodafone Group's gross profit for the six months ended in Sep. 2020 was $7,974 Mil. Vodafone Group's Revenue for the six months ended in Sep. 2020 was $25,238 Mil. Therefore, Vodafone Group's Gross Margin % for the quarter that ended in Sep. 2020 was 31.60%.
Vodafone Group had a gross margin of 31.60% for the quarter that ended in Sep. 2020 => Competition eroding margins
During the past 13 years, the highest Gross Margin % of Vodafone Group was 32.84%. The lowest was 26.29%. And the median was 29.78%.
* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.
* The bar in red indicates where Vodafone Group's Gross Profit falls into.
Gross Profit is the different between the sale prices and the cost of buying or producing the goods.
Vodafone Group's Gross Profit for the fiscal year that ended in Mar. 2020 is calculated as
Gross Profit (A: Mar. 2020 ) | = | Revenue | - | Cost of Goods Sold |
= | 49695.027624309 | - | 33902.762430939 | |
= | 15,792 |
Vodafone Group's Gross Profit for the quarter that ended in Sep. 2020 is calculated as
Gross Profit (Q: Sep. 2020 ) | = | Revenue | - | Cost of Goods Sold |
= | 25237.926972909 | - | 17263.839811543 | |
= | 7,974 |
For stock reported semi-annually, GuruFocus uses latest annual data as the TTM data. Gross Profit for the trailing twelve months (TTM) ended in Sep. 2020 was $15,792 Mil.
Gross Profit is the numerator in the calculation of Gross Margin.
Vodafone Group's Gross Margin % for the quarter that ended in Sep. 2020 is calculated as
Gross Margin % (Q: Sep. 2020 ) | = | Gross Profit (Q: Sep. 2020 ) | / | Revenue (Q: Sep. 2020 ) |
= | (Revenue - Cost of Goods Sold) | / | Revenue | |
= | 7,974 | / | 25237.926972909 | |
= | 31.60 % |
* 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.
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
Vodafone Group had a gross margin of 31.60% for the quarter that ended in Sep. 2020 => Competition eroding margins
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