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JB Hunt Transport Services Inc (NAS:JBHT)
Gross Profit
$2,187 Mil (TTM As of Sep. 2014)

JB Hunt Transport Services Inc's gross profit for the three months ended in Sep. 2014 was $590 Mil. JB Hunt Transport Services Inc's gross profit for the trailing twelve months (TTM) ended in Sep. 2014 was $2,187 Mil.

Gross Margin is calculated as gross profit divided by its revenue. JB Hunt Transport Services Inc's gross profit for the three months ended in Sep. 2014 was $590 Mil. JB Hunt Transport Services Inc's revenue for the three months ended in Sep. 2014 was $1,601 Mil. Therefore, JB Hunt Transport Services Inc's Gross Margin for the quarter that ended in Sep. 2014 was 36.83%.

JB Hunt Transport Services Inc had a gross margin of 36.83% for the quarter that ended in Sep. 2014 => Competition eroding margins

During the past 13 years, the highest Gross Margin of JB Hunt Transport Services Inc was 58.42%. The lowest was 36.06%. And the median was 51.79%.

Warning Sign:

JB Hunt Transport Services Inc gross margin has been in long term decline. The average rate of decline per year is -3.8%.


Definition

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

JB Hunt Transport Services 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
=5584.571 - 3570.801
=2,014

JB Hunt Transport Services Inc's Gross Profit for the quarter that ended in Sep. 2014 is calculated as

Gross Profit (Q: Sep. 2014 )=Revenue - Cost of Goods Sold
=1601.156 - 1011.477
=590

JB Hunt Transport Services Inc Gross Profit for the trailing twelve months (TTM) ended in Sep. 2014 was 533.945 (Dec. 2013 ) + 500.593 (Mar. 2014 ) + 562.519 (Jun. 2014 ) + 589.679 (Sep. 2014 ) = $2,187 Mil.

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

JB Hunt Transport Services Inc's Gross Margin for the quarter that ended in Sep. 2014 is calculated as

Gross Margin (Q: Sep. 2014 )=Gross Profit (Q: Sep. 2014 ) / Revenue (Q: Sep. 2014 )
=(Revenue - Cost of Goods Sold) / Revenue
=590 / 1601.156
=36.83 %

* 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

JB Hunt Transport Services Inc had a gross margin of 36.83% for the quarter that ended in Sep. 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.

JB Hunt Transport Services Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Gross_Profit 1,441001,7051,5741,3801,4931,6891,8242,014

JB Hunt Transport Services Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
Gross_Profit 456461481460504515534501563590
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