Switch to:
Harley-Davidson Inc (NYSE:HOG)
Gross Profit
$2,358 Mil (TTM As of Mar. 2014)

Harley-Davidson Inc's gross profit for the three months ended in Mar. 2014 was $655 Mil. Harley-Davidson Inc's gross profit for the trailing twelve months (TTM) ended in Mar. 2014 was $2,358 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Harley-Davidson Inc's gross profit for the three months ended in Mar. 2014 was $655 Mil. Harley-Davidson Inc's revenue for the three months ended in Mar. 2014 was $1,726 Mil. Therefore, Harley-Davidson Inc's Gross Margin for the quarter that ended in Mar. 2014 was 37.97%.

Harley-Davidson Inc had a gross margin of 37.97% for the quarter that ended in Mar. 2014 => Competition eroding margins

During the past 13 years, the highest Gross Margin of Harley-Davidson Inc was 39.64%. The lowest was 29.73%. And the median was 37.22%.


Definition

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

Harley-Davidson 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
=5899.872 - 3561.409
=2,338

Harley-Davidson 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
=1726.048 - 1070.727
=655

Harley-Davidson Inc Gross Profit for the trailing twelve months (TTM) ended in Mar. 2014 was 719.205 (Jun. 2013 ) + 539.805 (Sep. 2013 ) + 443.6 (Dec. 2013 ) + 655.321 (Mar. 2014 ) = $2,358 Mil.

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

Harley-Davidson 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
=655 / 1726.048
=37.97 %

* 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

Harley-Davidson Inc had a gross margin of 37.97% for the quarter that ended in Mar. 2014 => 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 own currency.

Harley-Davidson Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Gross_Profit 1,9002,0402,2332,1142,3081,5971,8381,9762,1622,338

Harley-Davidson Inc Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
Gross_Profit 425562676493432636719540444655
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)
Free 7-day Trial
FEEDBACK
Hide