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JetBlue Airways Corp (NAS:JBLU)
Gross Profit
$3,534 Mil (TTM As of Jun. 2015)

JetBlue Airways Corp's gross profit for the three months ended in Jun. 2015 was $994 Mil. JetBlue Airways Corp's gross profit for the trailing twelve months (TTM) ended in Jun. 2015 was $3,534 Mil.

Gross Margin is calculated as gross profit divided by its revenue. JetBlue Airways Corp's gross profit for the three months ended in Jun. 2015 was $994 Mil. JetBlue Airways Corp's revenue for the three months ended in Jun. 2015 was $1,612 Mil. Therefore, JetBlue Airways Corp's Gross Margin for the quarter that ended in Jun. 2015 was 69.17%.

JetBlue Airways Corp had a gross margin of 69.17% for the quarter that ended in Jun. 2015 => Durable competitive advantage

During the past 13 years, the highest Gross Margin of JetBlue Airways Corp was 74.28%. The lowest was 46.56%. And the median was 54.37%.

Warning Sign:

JetBlue Airways Corp gross margin has been in long term decline. The average rate of decline per year is -5.5%.


Definition

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

JetBlue Airways Corp's Gross Profit for the fiscal year that ended in Dec. 2014 is calculated as

Gross Profit (A: Dec. 2014 )=Revenue - Cost of Goods Sold
=5817 - 2330
=3,487

JetBlue Airways Corp's Gross Profit for the quarter that ended in Jun. 2015 is calculated as

Gross Profit (Q: Jun. 2015 )=Revenue - Cost of Goods Sold
=1612 - 497
=1,115

JetBlue Airways Corp Gross Profit for the trailing twelve months (TTM) ended in Jun. 2015 was 786 (Sep. 2014 ) + 793 (Dec. 2014 ) + 961 (Mar. 2015 ) + 994 (Jun. 2015 ) = $3,534 Mil.

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

JetBlue Airways Corp's Gross Margin for the quarter that ended in Jun. 2015 is calculated as

Gross Margin (Q: Jun. 2015 )=Gross Profit (Q: Jun. 2015 ) / Revenue (Q: Jun. 2015 )
=(Revenue - Cost of Goods Sold) / Revenue
=1,115 / 1612
=69.17 %

* 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

JetBlue Airways Corp had a gross margin of 69.17% for the quarter that ended in Jun. 2015 => 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.

JetBlue Airways Corp Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
Gross_Profit 002,1111,8642,1922,3102,4602,4312,6773,042

JetBlue Airways Corp Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
Gross_Profit 616646719696683780786793961994
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