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Texas Instruments Inc  (NAS:TXN) Gross Profit: $10,091 Mil (TTM As of Mar. 2019)

Texas Instruments Inc's gross profit for the three months ended in Mar. 2019 was $2,261 Mil. Texas Instruments Inc's gross profit for the trailing twelve months (TTM) ended in Mar. 2019 was $10,091 Mil.

Gross Margin % is calculated as gross profit divided by its revenue. Texas Instruments Inc's gross profit for the three months ended in Mar. 2019 was $2,261 Mil. Texas Instruments Inc's Revenue for the three months ended in Mar. 2019 was $3,594 Mil. Therefore, Texas Instruments Inc's Gross Margin % for the quarter that ended in Mar. 2019 was 62.91%.

Texas Instruments Inc had a gross margin of 62.91% for the quarter that ended in Mar. 2019 => Durable competitive advantage

During the past 13 years, the highest Gross Margin % of Texas Instruments Inc was 65.11%. The lowest was 47.94%. And the median was 55.29%.


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.

Texas Instruments Inc Annual Data

Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18
Gross Profit Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 7,427.00 7,575.00 8,257.00 9,614.00 10,277.00

Texas Instruments Inc Quarterly Data

Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19
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 2,447.00 2,619.00 2,804.00 2,407.00 2,261.00

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.


Texas Instruments Inc Distribution

* The bar in red indicates where Texas Instruments Inc's Gross Profit falls into.



Calculation

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

Texas Instruments Inc's Gross Profit for the fiscal year that ended in Dec. 2018 is calculated as

Gross Profit (A: Dec. 2018 )=Revenue - Cost of Goods Sold
=15784 - 5507
=10,277

Texas Instruments Inc's Gross Profit for the quarter that ended in Mar. 2019 is calculated as

Gross Profit (Q: Mar. 2019 )=Revenue - Cost of Goods Sold
=3594 - 1333
=2,261

Gross Profit for the trailing twelve months (TTM) ended in Mar. 2019 was 2619 (Jun. 2018 ) + 2804 (Sep. 2018 ) + 2407 (Dec. 2018 ) + 2261 (Mar. 2019 ) = $10,091 Mil.

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

Texas Instruments Inc's Gross Margin % for the quarter that ended in Mar. 2019 is calculated as

Gross Margin % (Q: Mar. 2019 )=Gross Profit (Q: Mar. 2019 ) / Revenue (Q: Mar. 2019 )
=(Revenue - Cost of Goods Sold) / Revenue
=2,261 / 3594
=62.91 %

* 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

Texas Instruments Inc had a gross margin of 62.91% for the quarter that ended in Mar. 2019 => Durable competitive advantage


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