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JetBlue Airways Corp (NAS:JBLU)
Gross Profit
$4,114 Mil (TTM As of Dec. 2015)

JetBlue Airways Corp's gross profit for the three months ended in Dec. 2015 was $1,067 Mil. JetBlue Airways Corp's gross profit for the trailing twelve months (TTM) ended in Dec. 2015 was $4,114 Mil.

Gross Margin is calculated as gross profit divided by its revenue. JetBlue Airways Corp's gross profit for the three months ended in Dec. 2015 was $1,067 Mil. JetBlue Airways Corp's revenue for the three months ended in Dec. 2015 was $1,594 Mil. Therefore, JetBlue Airways Corp's Gross Margin for the quarter that ended in Dec. 2015 was 66.94%.

JetBlue Airways Corp had a gross margin of 66.94% for the quarter that ended in Dec. 2015 => Durable competitive advantage

During the past 13 years, the highest Gross Margin of JetBlue Airways Corp was 77.02%. The lowest was 28.50%. And the median was 53.94%.

Warning Sign:

JetBlue Airways Corp gross margin has been in long term decline. The average rate of decline per year is -2.2%.


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. 2015 is calculated as

Gross Profit (A: Dec. 2015 )=Revenue - Cost of Goods Sold
=6416 - 2302
=4,114

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

Gross Profit (Q: Dec. 2015 )=Revenue - Cost of Goods Sold
=1594 - 527
=1,067

JetBlue Airways Corp Gross Profit for the trailing twelve months (TTM) ended in Dec. 2015 was 961 (Mar. 2015 ) + 994 (Jun. 2015 ) + 1092 (Sep. 2015 ) + 1067 (Dec. 2015 ) = $4,114 Mil.

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

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

Gross Margin (Q: Dec. 2015 )=Gross Profit (Q: Dec. 2015 ) / Revenue (Q: Dec. 2015 )
=(Revenue - Cost of Goods Sold) / Revenue
=1,067 / 1594
=66.94 %

* 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 66.94% for the quarter that ended in Dec. 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

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
Gross_Profit 6748102,2372,5312,8462,2332,7692,6773,0424,114

JetBlue Airways Corp Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
Gross_Profit 6966837807867939619941,0921,0671,153
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