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Pearson (FRA:PES) Gross Profit : €2,102 Mil (TTM As of Jun. 2024)


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What is Pearson Gross Profit?

Pearson's gross profit for the six months ended in Jun. 2024 was €1,039 Mil. Pearson's gross profit for the trailing twelve months (TTM) ended in Jun. 2024 was €2,102 Mil.

Gross Margin % is calculated as gross profit divided by its revenue. Pearson's gross profit for the six months ended in Jun. 2024 was €1,039 Mil. Pearson's Revenue for the six months ended in Jun. 2024 was €2,073 Mil. Therefore, Pearson's Gross Margin % for the quarter that ended in Jun. 2024 was 50.11%.

Pearson had a gross margin of 50.11% for the quarter that ended in Jun. 2024 => Durable competitive advantage

During the past 13 years, the highest Gross Margin % of Pearson was 55.66%. The lowest was 46.73%. And the median was 52.46%.

Warning Sign:

Pearson PLC gross margin has been in long-term decline. The average rate of decline per year is -1.7%.


Pearson Gross Profit Historical Data

The historical data trend for Pearson'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.

* Premium members only.

Pearson Gross Profit Chart

Pearson Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Profit
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2,372.08 1,800.89 1,978.31 2,063.92 2,129.99

Pearson Semi-Annual Data
Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24
Gross Profit Get a 7-Day Free Trial 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 961.15 1,115.32 1,071.01 1,063.26 1,038.92

Competitive Comparison of Pearson's Gross Profit

For the Publishing subindustry, Pearson'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.


Pearson's Gross Profit Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Pearson's Gross Profit distribution charts can be found below:

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



Pearson Gross Profit Calculation

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

Pearson's Gross Profit for the fiscal year that ended in Dec. 2023 is calculated as

Gross Profit (A: Dec. 2023 )=Revenue - Cost of Goods Sold
=4264.63 - 2134.636
=2,130

Pearson's Gross Profit for the quarter that ended in Jun. 2024 is calculated as

Gross Profit (Q: Jun. 2024 )=Revenue - Cost of Goods Sold
=2073.112 - 1034.192
=1,039

Gross Profit for the trailing twelve months (TTM) ended in Jun. 2024 adds up the semi-annually data reported by the company within the most recent 12 months, which was €2,102 Mil.

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

Pearson's Gross Margin % for the quarter that ended in Jun. 2024 is calculated as

Gross Margin % (Q: Jun. 2024 )=Gross Profit (Q: Jun. 2024 ) / Revenue (Q: Jun. 2024 )
=(Revenue - Cost of Goods Sold) / Revenue
=1,039 / 2073.112
=50.11 %

* 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.


Pearson  (FRA:PES) 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

Pearson had a gross margin of 50.11% for the quarter that ended in Jun. 2024 => Durable competitive advantage


Pearson Gross Profit Related Terms

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Pearson Business Description

Traded in Other Exchanges
Address
80 Strand, London, GBR, WC2R 0RL
U.K.-listed Pearson is the world's largest educational provider. The company has been disposing of noncore businesses such as the Financial Times, The Economist, and publishing house Penguin, and is now focused on being an educational resource and testing provider. While Pearson's primary activity centres on higher-level education, the firm also has significant operations in providing clinical assessments, professional certification and testing.

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