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B/E Aerospace Inc (NAS:BEAV)
Gross Profit
$1,073 Mil (TTM As of Sep. 2015)

B/E Aerospace Inc's gross profit for the three months ended in Sep. 2015 was $255 Mil. B/E Aerospace Inc's gross profit for the trailing twelve months (TTM) ended in Sep. 2015 was $1,073 Mil.

Gross Margin is calculated as gross profit divided by its revenue. B/E Aerospace Inc's gross profit for the three months ended in Sep. 2015 was $255 Mil. B/E Aerospace Inc's revenue for the three months ended in Sep. 2015 was $680 Mil. Therefore, B/E Aerospace Inc's Gross Margin for the quarter that ended in Sep. 2015 was 37.57%.

B/E Aerospace Inc had a gross margin of 37.57% for the quarter that ended in Sep. 2015 => Competition eroding margins

During the past 13 years, the highest Gross Margin of B/E Aerospace Inc was 41.82%. The lowest was 33.98%. And the median was 35.73%.


Definition

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

B/E Aerospace Inc's Gross Profit for the fiscal year that ended in Dec. 2014 is calculated as

Gross Profit (A: Dec. 2014 )=Revenue - Cost of Goods Sold
=2599 - 1582.8
=1,016

B/E Aerospace Inc's Gross Profit for the quarter that ended in Sep. 2015 is calculated as

Gross Profit (Q: Sep. 2015 )=Revenue - Cost of Goods Sold
=679.8 - 424.4
=255

B/E Aerospace Inc Gross Profit for the trailing twelve months (TTM) ended in Sep. 2015 was 248.8 (Dec. 2014 ) + 288.4 (Mar. 2015 ) + 280.5 (Jun. 2015 ) + 255.4 (Sep. 2015 ) = $1,073 Mil.

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

B/E Aerospace Inc's Gross Margin for the quarter that ended in Sep. 2015 is calculated as

Gross Margin (Q: Sep. 2015 )=Gross Profit (Q: Sep. 2015 ) / Revenue (Q: Sep. 2015 )
=(Revenue - Cost of Goods Sold) / Revenue
=255 / 679.8
=37.57 %

* 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

B/E Aerospace Inc had a gross margin of 37.57% for the quarter that ended in Sep. 2015 => Competition eroding margins


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.

B/E Aerospace Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
Gross_Profit 3975707246697219368019071,0161,087

B/E Aerospace Inc Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
Gross_Profit 342-81262276230249288281255263
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