Switch to:
Chicago Bridge & Iron Company (NYSE:CBI)
Gross Profit
$1,199 Mil (TTM As of Dec. 2013)

Chicago Bridge & Iron Company's gross profit for the three months ended in Dec. 2013 was $339 Mil. Chicago Bridge & Iron Company's gross profit for the trailing twelve months (TTM) ended in Dec. 2013 was $1,199 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Chicago Bridge & Iron Company's gross profit for the three months ended in Dec. 2013 was $339 Mil. Chicago Bridge & Iron Company's revenue for the three months ended in Dec. 2013 was $3,000 Mil. Therefore, Chicago Bridge & Iron Company's Gross Margin for the quarter that ended in Dec. 2013 was 11.31%.

Chicago Bridge & Iron Company had a gross margin of 11.31% for the quarter that ended in Dec. 2013 => No sustainable competitive advantage

During the past 13 years, the highest Gross Margin of Chicago Bridge & Iron Company was 13.96%. The lowest was 3.92%. And the median was 11.79%.


Definition

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

Chicago Bridge & Iron Company'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
=11094.527 - 9895.517
=1,199

Chicago Bridge & Iron Company's Gross Profit for the quarter that ended in Dec. 2013 is calculated as

Gross Profit (Q: Dec. 2013 )=Revenue - Cost of Goods Sold
=3000.257 - 2661.051
=339

Chicago Bridge & Iron Company Gross Profit for the trailing twelve months (TTM) ended in Dec. 2013 was 246.144 (Mar. 2013 ) + 297.091 (Jun. 2013 ) + 316.569 (Sep. 2013 ) + 339.206 (Dec. 2013 ) = $1,199 Mil.

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

Chicago Bridge & Iron Company'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
=339 / 3000.257
=11.31 %

* 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

Chicago Bridge & Iron Company had a gross margin of 11.31% for the quarter that ended in Dec. 2013 => No sustainable 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.

Chicago Bridge & Iron Company Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Gross_Profit 2021482823572335234925706991,199

Chicago Bridge & Iron Company Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
Gross_Profit 147147153159189198246297317339
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)
Free 7-day Trial
FEEDBACK
Hide