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B/E Aerospace Inc (NAS:BEAV)
Gross Profit
$1,329 Mil (TTM As of Dec. 2013)

B/E Aerospace Inc's gross profit for the three months ended in Dec. 2013 was $341 Mil. B/E Aerospace Inc's gross profit for the trailing twelve months (TTM) ended in Dec. 2013 was $1,329 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 Dec. 2013 was $341 Mil. B/E Aerospace Inc's revenue for the three months ended in Dec. 2013 was $903 Mil. Therefore, B/E Aerospace Inc's Gross Margin for the quarter that ended in Dec. 2013 was 37.73%.

B/E Aerospace Inc had a gross margin of 37.73% for the quarter that ended in Dec. 2013 => Competition eroding margins

During the past 13 years, the highest Gross Margin of B/E Aerospace Inc was 39.30%. The lowest was 22.10%. And the median was 35.03%.


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. 2013 is calculated as

Gross Profit (A: Dec. 2013 )=Revenue - Cost of Goods Sold
=3483.7 - 2154.8
=1,329

B/E Aerospace Inc's Gross Profit for the quarter that ended in Dec. 2013 is calculated as

Gross Profit (Q: Dec. 2013 )=Revenue - Cost of Goods Sold
=903.1 - 562.4
=341

B/E Aerospace Inc Gross Profit for the trailing twelve months (TTM) ended in Dec. 2013 was 319.1 (Mar. 2013 ) + 326.8 (Jun. 2013 ) + 342.3 (Sep. 2013 ) + 340.7 (Dec. 2013 ) = $1,329 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 Dec. 2013 is calculated as

Gross Margin (Q: Dec. 2013 )=Gross Profit (Q: Dec. 2013 ) / Revenue (Q: Dec. 2013 )
=(Revenue - Cost of Goods Sold) / Revenue
=341 / 903.1
=37.73 %

* 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 37.73% for the quarter that ended in Dec. 2013 => 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

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Gross_Profit 2392963975707246697219361,1641,329

B/E Aerospace Inc Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
Gross_Profit 238243284293288299319327342341
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