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Camping World Holdings Inc (NYSE:CWH)
Gross Profit
$993 Mil (TTM As of Sep. 2016)

Camping World Holdings Inc's gross profit for the three months ended in Sep. 2016 was $282 Mil. Camping World Holdings Inc's gross profit for the trailing twelve months (TTM) ended in Sep. 2016 was $993 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Camping World Holdings Inc's gross profit for the three months ended in Sep. 2016 was $282 Mil. Camping World Holdings Inc's revenue for the three months ended in Sep. 2016 was $1,006 Mil. Therefore, Camping World Holdings Inc's Gross Margin for the quarter that ended in Sep. 2016 was 28.04%.

Camping World Holdings Inc had a gross margin of 28.04% for the quarter that ended in Sep. 2016 => Competition eroding margins


Definition

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

Camping World Holdings 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
=3333.261 - 2419.299
=914

Camping World Holdings Inc's Gross Profit for the quarter that ended in Sep. 2016 is calculated as

Gross Profit (Q: Sep. 2016 )=Revenue - Cost of Goods Sold
=1005.987 - 723.886
=282

Camping World Holdings Inc Gross Profit for the trailing twelve months (TTM) ended in Sep. 2016 was 184.539 (Dec. 2015 ) + 225.887 (Mar. 2016 ) + 300.634 (Jun. 2016 ) + 282.101 (Sep. 2016 ) = $993 Mil.

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

Camping World Holdings Inc's Gross Margin for the quarter that ended in Sep. 2016 is calculated as

Gross Margin (Q: Sep. 2016 )=Gross Profit (Q: Sep. 2016 ) / Revenue (Q: Sep. 2016 )
=(Revenue - Cost of Goods Sold) / Revenue
=282 / 1005.987
=28.04 %

* 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

Camping World Holdings Inc had a gross margin of 28.04% for the quarter that ended in Sep. 2016 => Competition eroding margins


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.

Camping World Holdings Inc Annual Data

Dec13Dec14Dec15
Gross_Profit 0000000663755914

Camping World Holdings Inc Quarterly Data

Dec13Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
Gross_Profit 0-1,5740195275259185226301282
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