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Crocs Inc (NAS:CROX)
Gross Profit
$513 Mil (TTM As of Mar. 2016)

Crocs Inc's gross profit for the three months ended in Mar. 2016 was $129 Mil. Crocs Inc's gross profit for the trailing twelve months (TTM) ended in Mar. 2016 was $513 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Crocs Inc's gross profit for the three months ended in Mar. 2016 was $129 Mil. Crocs Inc's revenue for the three months ended in Mar. 2016 was $279 Mil. Therefore, Crocs Inc's Gross Margin for the quarter that ended in Mar. 2016 was 46.34%.

Crocs Inc had a gross margin of 46.34% for the quarter that ended in Mar. 2016 => Durable competitive advantage

During the past 13 years, the highest Gross Margin of Crocs Inc was 58.73%. The lowest was 32.42%. And the median was 52.92%.

Warning Sign:

Crocs Inc gross margin has been in long term decline. The average rate of decline per year is -2.7%.


Definition

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

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

Gross Profit (A: Dec. 2015 )=Revenue - Cost of Goods Sold
=1090.63 - 579.825
=511

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

Gross Profit (Q: Mar. 2016 )=Revenue - Cost of Goods Sold
=279.14 - 149.774
=129

Crocs Inc Gross Profit for the trailing twelve months (TTM) ended in Mar. 2016 was 189.87 (Jun. 2015 ) + 120.821 (Sep. 2015 ) + 72.744 (Dec. 2015 ) + 129.366 (Mar. 2016 ) = $513 Mil.

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

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

Gross Margin (Q: Mar. 2016 )=Gross Profit (Q: Mar. 2016 ) / Revenue (Q: Mar. 2016 )
=(Revenue - Cost of Goods Sold) / Revenue
=129 / 279.14
=46.34 %

* 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

Crocs Inc had a gross margin of 46.34% for the quarter that ended in Mar. 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 own currency.

Crocs Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
Gross_Profit 201498234301424536608623590511

Crocs Inc Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
Gross_Profit 1031562031557712719012173129
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