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Hawaiian Holdings Inc (NAS:HA)
Gross Profit
$1,057 Mil (TTM As of Mar. 2014)

Hawaiian Holdings Inc's gross profit for the three months ended in Mar. 2014 was $239 Mil. Hawaiian Holdings Inc's gross profit for the trailing twelve months (TTM) ended in Mar. 2014 was $1,057 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Hawaiian Holdings Inc's gross profit for the three months ended in Mar. 2014 was $239 Mil. Hawaiian Holdings Inc's revenue for the three months ended in Mar. 2014 was $525 Mil. Therefore, Hawaiian Holdings Inc's Gross Margin for the quarter that ended in Mar. 2014 was 50.53%.

Hawaiian Holdings Inc had a gross margin of 50.53% for the quarter that ended in Mar. 2014 => Durable competitive advantage

During the past 13 years, the highest Gross Margin of Hawaiian Holdings Inc was 74.37%. The lowest was -20347000.00%. And the median was 35.68%.

Warning Sign:

Hawaiian Holdings Inc gross margin has been in long term decline. The average rate of decline per year is -5%.


Definition

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

Hawaiian Holdings Inc's Gross Profit for the fiscal year that ended in Dec. 2013 is calculated as

Gross Profit (A: Dec. 2013 )=Revenue - Cost of Goods Sold
=2155.865 - 1022.824
=1,133

Hawaiian Holdings Inc's Gross Profit for the quarter that ended in Mar. 2014 is calculated as

Gross Profit (Q: Mar. 2014 )=Revenue - Cost of Goods Sold
=524.858 - 259.67
=265

Hawaiian Holdings Inc Gross Profit for the trailing twelve months (TTM) ended in Mar. 2014 was 254.156 (Jun. 2013 ) + 307.604 (Sep. 2013 ) + 256.819 (Dec. 2013 ) + 238.909 (Mar. 2014 ) = $1,057 Mil.

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

Hawaiian Holdings Inc's Gross Margin for the quarter that ended in Mar. 2014 is calculated as

Gross Margin (Q: Mar. 2014 )=Gross Profit (Q: Mar. 2014 ) / Revenue (Q: Mar. 2014 )
=(Revenue - Cost of Goods Sold) / Revenue
=265 / 524.858
=50.53 %

* 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

Hawaiian Holdings Inc had a gross margin of 50.53% for the quarter that ended in Mar. 2014 => 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.

Hawaiian Holdings Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Gross_Profit 017804466238809251,0559441,025

Hawaiian Holdings Inc Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
Gross_Profit 402230235285217206254308257239
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