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Sunoco LP  (NYSE:SUN) Gross Profit: $2,510 Mil (TTM As of Sep. 2017)

Sunoco LP's gross profit for the three months ended in Sep. 2017 was $251 Mil. Sunoco LP's gross profit for the trailing twelve months (TTM) ended in Sep. 2017 was $2,510 Mil.

Gross Margin % is calculated as gross profit divided by its revenue. Sunoco LP's gross profit for the three months ended in Sep. 2017 was $251 Mil. Sunoco LP's Revenue for the three months ended in Sep. 2017 was $2,555 Mil. Therefore, Sunoco LP's Gross Margin % for the quarter that ended in Sep. 2017 was 9.82%.

Sunoco LP had a gross margin of 9.82% for the quarter that ended in Sep. 2017 => No sustainable competitive advantage

During the past 7 years, the highest Gross Margin % of Sunoco LP was 14.14%. The lowest was 1.11%. And the median was 3.47%.


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.

Sunoco LP Annual Data

Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16
Gross Profit Premium Member Only Premium Member Only 51.50 381.08 0.00 1,984.00 2,219.00

Sunoco LP Quarterly Data

Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17
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 192.00 1,591.00 503.00 165.00 251.00

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.


Calculation

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

Sunoco LP's Gross Profit for the fiscal year that ended in Dec. 2016 is calculated as

Gross Profit (A: Dec. 2016 )=Revenue - Cost of Goods Sold
=15698 - 13479
=2,219

Sunoco LP's Gross Profit for the quarter that ended in Sep. 2017 is calculated as

Gross Profit (Q: Sep. 2017 )=Revenue - Cost of Goods Sold
=2555 - 2304
=251

Gross Profit for the trailing twelve months (TTM) ended in Sep. 2017 was 1591 (Dec. 2016 ) + 503 (Mar. 2017 ) + 165 (Jun. 2017 ) + 251 (Sep. 2017 ) = $2,510 Mil.

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

Sunoco LP's Gross Margin % for the quarter that ended in Sep. 2017 is calculated as

Gross Margin % (Q: Sep. 2017 )=Gross Profit (Q: Sep. 2017 ) / Revenue (Q: Sep. 2017 )
=(Revenue - Cost of Goods Sold) / Revenue
=251 / 2555
=9.82 %

* 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

Sunoco LP had a gross margin of 9.82% for the quarter that ended in Sep. 2017 => No sustainable competitive advantage


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