Switch to:
GuruFocus has detected 6 Warning Signs with CSX Corp \$CSX.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.
CSX Corp (NAS:CSX)
Gross Profit
\$8,030 Mil (TTM As of Mar. 2017)

CSX Corp's gross profit for the three months ended in Mar. 2017 was \$1,994 Mil. CSX Corp's gross profit for the trailing twelve months (TTM) ended in Mar. 2017 was \$8,030 Mil.

Gross Margin is calculated as gross profit divided by its revenue. CSX Corp's gross profit for the three months ended in Mar. 2017 was \$1,994 Mil. CSX Corp's revenue for the three months ended in Mar. 2017 was \$2,869 Mil. Therefore, CSX Corp's Gross Margin for the quarter that ended in Mar. 2017 was 69.50%.

CSX Corp had a gross margin of 69.50% for the quarter that ended in Mar. 2017 => Durable competitive advantage

During the past 13 years, the highest Gross Margin of CSX Corp was 73.05%. The lowest was 63.75%. And the median was 65.86%.

Definition

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

CSX Corp's Gross Profit for the fiscal year that ended in Dec. 2016 is calculated as

 Gross Profit (A: Dec. 2016 ) = Revenue - Cost of Goods Sold = 11069 - 3220 = 7,849

CSX Corp's Gross Profit for the quarter that ended in Mar. 2017 is calculated as

 Gross Profit (Q: Mar. 2017 ) = Revenue - Cost of Goods Sold = 2869 - 875 = 1,994

CSX Corp Gross Profit for the trailing twelve months (TTM) ended in Mar. 2017 was 1908 (Jun. 2016 ) + 1924 (Sep. 2016 ) + 2204 (Dec. 2016 ) + 1994 (Mar. 2017 ) = \$8,030 Mil.

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

CSX Corp's Gross Margin for the quarter that ended in Mar. 2017 is calculated as

 Gross Margin (Q: Mar. 2017 ) = Gross Profit (Q: Mar. 2017 ) / Revenue (Q: Mar. 2017 ) = (Revenue - Cost of Goods Sold) / Revenue = 1,994 / 2869 = 69.50 %

* 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

CSX Corp had a gross margin of 69.50% for the quarter that ended in Mar. 2017 => Durable competitive advantage

Related Terms

Historical Data

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

CSX Corp Annual Data

 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Gross_Profit 6,549 7,477 6,604 7,723 7,519 7,543 7,715 8,141 8,082 7,849

CSX Corp Quarterly Data

 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Gross_Profit 2,100 2,017 2,141 2,022 1,902 1,813 1,908 1,924 2,204 1,994
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)