Switch to:
Chicago Bridge & Iron Co (NYSE:CBI)
Gross Profit
$1,522 Mil (TTM As of Sep. 2015)

Chicago Bridge & Iron Co's gross profit for the three months ended in Sep. 2015 was $378 Mil. Chicago Bridge & Iron Co's gross profit for the trailing twelve months (TTM) ended in Sep. 2015 was $1,522 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Chicago Bridge & Iron Co's gross profit for the three months ended in Sep. 2015 was $378 Mil. Chicago Bridge & Iron Co's revenue for the three months ended in Sep. 2015 was $3,322 Mil. Therefore, Chicago Bridge & Iron Co's Gross Margin for the quarter that ended in Sep. 2015 was 11.37%.

Chicago Bridge & Iron Co had a gross margin of 11.37% for the quarter that ended in Sep. 2015 => No sustainable competitive advantage

During the past 13 years, the highest Gross Margin of Chicago Bridge & Iron Co was 13.51%. The lowest was 3.92%. And the median was 11.06%.

Warning Sign:

Chicago Bridge & Iron Co gross margin has been in long term decline. The average rate of decline per year is -2.1%.


Definition

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

Chicago Bridge & Iron Co'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
=12974.93 - 11508.521
=1,466

Chicago Bridge & Iron Co's Gross Profit for the quarter that ended in Sep. 2015 is calculated as

Gross Profit (Q: Sep. 2015 )=Revenue - Cost of Goods Sold
=3321.682 - 2943.965
=378

Chicago Bridge & Iron Co Gross Profit for the trailing twelve months (TTM) ended in Sep. 2015 was 390.638 (Dec. 2014 ) + 370.171 (Mar. 2015 ) + 383.123 (Jun. 2015 ) + 377.717 (Sep. 2015 ) = $1,522 Mil.

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

Chicago Bridge & Iron Co'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
=378 / 3321.682
=11.37 %

* 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 Co had a gross margin of 11.37% for the quarter that ended in Sep. 2015 => 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 Co Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
Gross_Profit 1482823572335234925706991,1991,466

Chicago Bridge & Iron Co Quarterly Data

Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15
Gross_Profit 297317339301381393391370383378
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)

GuruFocus Premium Plus Membership

FEEDBACK