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Copart Inc (NAS:CPRT)
Gross Profit
$569 Mil (TTM As of Oct. 2016)

Copart Inc's gross profit for the three months ended in Oct. 2016 was $145 Mil. Copart Inc's gross profit for the trailing twelve months (TTM) ended in Oct. 2016 was $569 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Copart Inc's gross profit for the three months ended in Oct. 2016 was $145 Mil. Copart Inc's revenue for the three months ended in Oct. 2016 was $346 Mil. Therefore, Copart Inc's Gross Margin for the quarter that ended in Oct. 2016 was 41.99%.

Copart Inc had a gross margin of 41.99% for the quarter that ended in Oct. 2016 => Durable competitive advantage

During the past 13 years, the highest Gross Margin of Copart Inc was 47.58%. The lowest was 40.23%. And the median was 42.47%.


Definition

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

Copart Inc's Gross Profit for the fiscal year that ended in Jul. 2015 is calculated as

Gross Profit (A: Jul. 2015 )=Revenue - Cost of Goods Sold
=1146.079 - 662.703
=483

Copart Inc's Gross Profit for the quarter that ended in Oct. 2016 is calculated as

Gross Profit (Q: Oct. 2016 )=Revenue - Cost of Goods Sold
=345.991 - 200.698
=145

Copart Inc Gross Profit for the trailing twelve months (TTM) ended in Oct. 2016 was 124.614 (Jan. 2016 ) + 157.647 (Apr. 2016 ) + 141.464 (Jul. 2016 ) + 145.293 (Oct. 2016 ) = $569 Mil.

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

Copart Inc's Gross Margin for the quarter that ended in Oct. 2016 is calculated as

Gross Margin (Q: Oct. 2016 )=Gross Profit (Q: Oct. 2016 ) / Revenue (Q: Oct. 2016 )
=(Revenue - Cost of Goods Sold) / Revenue
=145 / 345.991
=41.99 %

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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

Copart Inc had a gross margin of 41.99% for the quarter that ended in Oct. 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 local exchange's currency.

Copart Inc Annual Data

Jul07Jul08Jul09Jul10Jul11Jul12Jul13Jul14Jul15Jul16
Gross_Profit 267322312348373410421469483545

Copart Inc Quarterly Data

Jul14Oct14Jan15Apr15Jul15Oct15Jan16Apr16Jul16Oct16
Gross_Profit 117122115127119121125158141145
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