Switch to:
Agilent Technologies Inc (NYSE:A)
Gross Profit
$2,065 Mil (TTM As of Jan. 2016)

Agilent Technologies Inc's gross profit for the three months ended in Jan. 2016 was $537 Mil. Agilent Technologies Inc's gross profit for the trailing twelve months (TTM) ended in Jan. 2016 was $2,065 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Agilent Technologies Inc's gross profit for the three months ended in Jan. 2016 was $537 Mil. Agilent Technologies Inc's revenue for the three months ended in Jan. 2016 was $1,028 Mil. Therefore, Agilent Technologies Inc's Gross Margin for the quarter that ended in Jan. 2016 was 52.24%.

Agilent Technologies Inc had a gross margin of 52.24% for the quarter that ended in Jan. 2016 => Durable competitive advantage

During the past 13 years, the highest Gross Margin of Agilent Technologies Inc was 55.35%. The lowest was 50.54%. And the median was 52.95%.

Warning Sign:

Agilent Technologies Inc gross margin has been in long term decline. The average rate of decline per year is -1.2%.


Definition

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

Agilent Technologies Inc's Gross Profit for the fiscal year that ended in Oct. 2015 is calculated as

Gross Profit (A: Oct. 2015 )=Revenue - Cost of Goods Sold
=4038 - 1997
=2,041

Agilent Technologies Inc's Gross Profit for the quarter that ended in Jan. 2016 is calculated as

Gross Profit (Q: Jan. 2016 )=Revenue - Cost of Goods Sold
=1028 - 491
=537

Agilent Technologies Inc Gross Profit for the trailing twelve months (TTM) ended in Jan. 2016 was 480 (Apr. 2015 ) + 513 (Jul. 2015 ) + 535 (Oct. 2015 ) + 537 (Jan. 2016 ) = $2,065 Mil.

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

Agilent Technologies Inc's Gross Margin for the quarter that ended in Jan. 2016 is calculated as

Gross Margin (Q: Jan. 2016 )=Gross Profit (Q: Jan. 2016 ) / Revenue (Q: Jan. 2016 )
=(Revenue - Cost of Goods Sold) / Revenue
=537 / 1028
=52.24 %

* All numbers are in millions except for per share data and ratio. All numbers are in their own 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

Agilent Technologies Inc had a gross margin of 52.24% for the quarter that ended in Jan. 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 own currency.

Agilent Technologies Inc Annual Data

Oct06Oct07Oct08Oct09Oct10Oct11Oct12Oct13Oct14Oct15
Gross_Profit 2,6582,9693,1962,2922,9303,5293,6043,5353,5932,041

Agilent Technologies Inc Quarterly Data

Jan14Apr14Jul14Oct14Jan15Apr15Jul15Oct15Jan16Apr16
Gross_Profit 510485502479513480513535537530
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK