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GuruFocus has detected 6 Warning Signs with Symantec Corp $SYMC.
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Symantec Corp (NAS:SYMC)
Gross Profit
$3,036 Mil (TTM As of Dec. 2016)

Symantec Corp's gross profit for the three months ended in Dec. 2016 was $806 Mil. Symantec Corp's gross profit for the trailing twelve months (TTM) ended in Dec. 2016 was $3,036 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Symantec Corp's gross profit for the three months ended in Dec. 2016 was $806 Mil. Symantec Corp's revenue for the three months ended in Dec. 2016 was $1,041 Mil. Therefore, Symantec Corp's Gross Margin for the quarter that ended in Dec. 2016 was 77.43%.

Symantec Corp had a gross margin of 77.43% for the quarter that ended in Dec. 2016 => Durable competitive advantage

During the past 13 years, the highest Gross Margin of Symantec Corp was 83.92%. The lowest was 78.78%. And the median was 81.58%.


Definition

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

Symantec Corp's Gross Profit for the fiscal year that ended in Mar. 2016 is calculated as

Gross Profit (A: Mar. 2016 )=Revenue - Cost of Goods Sold
=3600 - 615
=2,985

Symantec Corp's Gross Profit for the quarter that ended in Dec. 2016 is calculated as

Gross Profit (Q: Dec. 2016 )=Revenue - Cost of Goods Sold
=1041 - 235
=806

Symantec Corp Gross Profit for the trailing twelve months (TTM) ended in Dec. 2016 was 726 (Mar. 2016 ) + 735 (Jun. 2016 ) + 769 (Sep. 2016 ) + 806 (Dec. 2016 ) = $3,036 Mil.

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

Symantec Corp's Gross Margin for the quarter that ended in Dec. 2016 is calculated as

Gross Margin (Q: Dec. 2016 )=Gross Profit (Q: Dec. 2016 ) / Revenue (Q: Dec. 2016 )
=(Revenue - Cost of Goods Sold) / Revenue
=806 / 1041
=77.43 %

* 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

Symantec Corp had a gross margin of 77.43% for the quarter that ended in Dec. 2016 => Durable competitive advantage


Related Terms

Cost of Goods Sold, Gross Margin, Revenue


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Symantec Corp Annual Data

Mar07Mar08Mar09Mar10Mar11Mar12Mar13Mar14Mar15Mar16
Gross_Profit 3,9844,6544,9234,8805,1455,6485,7313,3923,2292,985

Symantec Corp Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
Gross_Profit 1,339793723754746759726735769806
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