SolarCity's gross profit for the
three
months ended in Sep. 2016 was $71.6 Mil. SolarCity's gross profit for the trailing twelve months (TTM) ended in Sep. 2016 was $184.8 Mil.
Gross Margin % is calculated as gross profit divided by its revenue. SolarCity's gross profit for the
three
months ended in Sep. 2016 was $71.6 Mil. SolarCity's Revenue for the
three
months ended in Sep. 2016 was $200.6 Mil. Therefore, SolarCity's Gross Margin % for the quarter that ended in Sep. 2016 was 35.70%.
SolarCity had a gross margin of 35.70% for the quarter that ended in Sep. 2016 => Competition eroding margins
SolarCity Gross Profit Historical Data
The historical data trend for SolarCity's Gross Profit can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of SolarCity's Gross Profit
For the Utilities - Independent Power Producers subindustry, SolarCity's Gross Profit, along with its competitors' market caps and Gross Profit data, can be viewed below:
* 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. Note that "N/A" values will not show up in the chart.
SolarCity's Gross Profit Distribution in the Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, SolarCity's Gross Profit distribution charts can be found below:
* The bar in red indicates where SolarCity's Gross Profit falls into.
SolarCity Gross Profit Calculation
Gross Profit is the different between the sale prices and the cost of buying or producing the goods.
SolarCity's Gross Profit for the fiscal year that ended in Dec. 2015 is calculated as
Gross Profit for the trailing twelve months (TTM) ended in Sep. 2016 adds up the quarterly data reported by the company within the most recent 12 months, which was $184.8 Mil.
Gross Profit is the numerator in the calculation of Gross Margin.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount 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.
SolarCity (NAS:SCTY) Gross Profit 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
SolarCity had a gross margin of 35.70% for the quarter that ended in Sep. 2016 => Competition eroding margins
SolarCity Gross Profit Related Terms
Thank you for viewing the detailed overview of SolarCity's Gross Profit provided by GuruFocus.com. Please click on the following links to see related term pages.
SolarCity Corp was incorporated as a Delaware corporation on June 21, 2006. The Company is engaged in the design, manufacture, installation and sale or lease of solar energy systems to residential and commercial customers, or sale of electricity generated by solar energy systems to customers. Its customers include residential, commercial and government. The residential customers are individual homeowners who want to switch to cleaner, more affordable energy. Residential customers also include homeowners within communities developed by home builders the company is partnered with. The Commercial customers represent diverse business sectors, including technology, retail, manufacturing, agriculture and nonprofits, including customers such as Walmart, eBay, HP, Walgreens, Intel, and Safeway, Mexican businesses such as Tiendas Soriana, and thousands of other businesses across the United States, including SMBs. For government the company has installed solar energy systems for various federal, state and municipal government entities, including the U.S. Air Force, Army, Marines and Navy, the City of Lancaster, the City of San Jose, the City of Sacramento, the Department of Homeland Security and a number of schools and universities. The Company market and sell its products and services through a national sales organization that includes a direct outside sales force, a door-to-door sales force, call centers, a channel partner network and a robust customer referral program. It purchases components such as solar panels and inverters directly from multiple manufacturers. The Company's competitors include Vivint Solar Inc., Sunrun Inc., NRG Home Solar, Sungevity, Inc., Trinity Solar, Verengo, Inc., SunPower Corporation, SunEdison LLC, Borrego Solar Systems, Inc., G&S Solar Installers, Cenergy Power and numerous other companies. The Company's operations are subject to stringent and complex federal, state and local laws and regulations governing the occupational health and safety of its employees, wage regulations and environmental regulations.
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