Polycom's gross profit for the
three
months ended in Jun. 2016 was €144 Mil. Polycom's gross profit for the trailing twelve months (TTM) ended in Jun. 2016 was €616 Mil.
Gross Margin % is calculated as gross profit divided by its revenue. Polycom's gross profit for the
three
months ended in Jun. 2016 was €144 Mil. Polycom's Revenue for the
three
months ended in Jun. 2016 was €256 Mil. Therefore, Polycom's Gross Margin % for the quarter that ended in Jun. 2016 was 56.04%.
Polycom had a gross margin of 56.04% for the quarter that ended in Jun. 2016 => Durable competitive advantage
Polycom Gross Profit Historical Data
The historical data trend for Polycom'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.
For the Communication Equipment subindustry, Polycom'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.
Polycom's Gross Profit Distribution in the Hardware Industry
For the Hardware industry and Technology sector, Polycom's Gross Profit distribution charts can be found below:
* The bar in red indicates where Polycom's Gross Profit falls into.
Polycom Gross Profit Calculation
Gross Profit is the different between the sale prices and the cost of buying or producing the goods.
Polycom'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 Jun. 2016 adds up the quarterly data reported by the company within the most recent 12 months, which was €616 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.
Polycom (STU:PLY) 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
Polycom had a gross margin of 56.04% for the quarter that ended in Jun. 2016 => Durable competitive advantage
Polycom Gross Profit Related Terms
Thank you for viewing the detailed overview of Polycom's Gross Profit provided by GuruFocus.com. Please click on the following links to see related term pages.
Polycom Inc was incorporated in December 1990 in Delaware. The Company provides an open, standards-based unified communications and collaboration (UC&C) solutions for voice, video and content collaboration solutions. Its solutions are powered by the Polycom RealPresence Platform, comprehensive software infrastructure and rich application programming interfaces (APIs) that interoperate with a set of communication, business, mobile, and cloud applications and devices to deliver secure face-to-face video collaboration across different environments. The Company is engaged in helping organizations achieve new levels of teamwork, efficiency and productivity by unleashing the power of human collaboration. The Company sells its solutions through a high-touch sales model that leverages its network of channel partners, including distributors, value-added resellers, system integrators; communications services providers, and retailers. The Company serves in three geographical segments; Americas, EMEA and APAC. Its products and solutions are; UC Group Systems, which includes immersive telepresence, group video and group voice systems. UC Platform, which includes collaboration servers, virtualization management "distributed media optimization", resource management, recording and streaming, open API's and remote access technologies that constitute the RealPresence Platform, and UC Personal Devices, which includes desktop video devices and desktop voice products. It competes in the UC&C market with products and solutions that enable voice, video and content collaboration on-premises, across intranets, extranets, mobile devices, and the Internet via its customer premises-based RealPresence Platform, web-based social-collaboration business platforms, and video collaboration-as-a-service offerings delivered from the cloud. These competitors include but are not limited to Cisco Systems, Inc., Acano, Avaya Inc., Blue Jeans Networks, Inc., ClearOne Communications, Inc., Huawei Technologies Co., Ltd., Logitech International S.A./LifeSize, PexIP, Snom Technology Ag, Vidyo, Inc., Yamaha Corporation/Revolabs, Inc., Yealink, ZTE Corporation and others. Its products and services are subject to various federal, state, local, and foreign laws and regulations.
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