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Target Corp  (NYSE:TGT) Gross Profit: $22,057 Mil (TTM As of Jan. 2019)

Target Corp's gross profit for the three months ended in Jan. 2019 was $6,078 Mil. Target Corp's gross profit for the trailing twelve months (TTM) ended in Jan. 2019 was $22,057 Mil.

Gross Margin % is calculated as gross profit divided by its revenue. Target Corp's gross profit for the three months ended in Jan. 2019 was $6,078 Mil. Target Corp's Revenue for the three months ended in Jan. 2019 was $22,977 Mil. Therefore, Target Corp's Gross Margin % for the quarter that ended in Jan. 2019 was 26.45%.

Target Corp had a gross margin of 26.45% for the quarter that ended in Jan. 2019 => Competition eroding margins

During the past 13 years, the highest Gross Margin % of Target Corp was 30.87%. The lowest was 29.20%. And the median was 29.93%.


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.

Target Corp Annual Data

Jan10 Jan11 Jan12 Jan13 Jan14 Jan15 Jan16 Jan17 Jan18 Jan19
Gross Profit Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 21,340.00 21,544.00 21,126.00 21,589.00 22,057.00

Target Corp Quarterly Data

Apr14 Jul14 Oct14 Jan15 Apr15 Jul15 Oct15 Jan16 Apr16 Jul16 Oct16 Jan17 Apr17 Jul17 Oct17 Jan18 Apr18 Jul18 Oct18 Jan19
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 6,188.00 5,156.00 5,537.00 5,286.00 6,078.00

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.


Target Corp Distribution

* The bar in red indicates where Target Corp's Gross Profit falls into.



Calculation

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

Target Corp's Gross Profit for the fiscal year that ended in Jan. 2019 is calculated as

Gross Profit (A: Jan. 2019 )=Revenue - Cost of Goods Sold
=75356 - 53299
=22,057

Target Corp's Gross Profit for the quarter that ended in Jan. 2019 is calculated as

Gross Profit (Q: Jan. 2019 )=Revenue - Cost of Goods Sold
=22977 - 16899
=6,078

Gross Profit for the trailing twelve months (TTM) ended in Jan. 2019 was 5156 (Apr. 2018 ) + 5537 (Jul. 2018 ) + 5286 (Oct. 2018 ) + 6078 (Jan. 2019 ) = $22,057 Mil.

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

Target Corp's Gross Margin % for the quarter that ended in Jan. 2019 is calculated as

Gross Margin % (Q: Jan. 2019 )=Gross Profit (Q: Jan. 2019 ) / Revenue (Q: Jan. 2019 )
=(Revenue - Cost of Goods Sold) / Revenue
=6,078 / 22977
=26.45 %

* 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

Target Corp had a gross margin of 26.45% for the quarter that ended in Jan. 2019 => Competition eroding margins


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