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Insight Enterprises Inc (NAS:NSIT)
Gross Profit
$704 Mil (TTM As of Mar. 2014)

Insight Enterprises Inc's gross profit for the three months ended in Mar. 2014 was $164 Mil. Insight Enterprises Inc's gross profit for the trailing twelve months (TTM) ended in Mar. 2014 was $704 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Insight Enterprises Inc's gross profit for the three months ended in Mar. 2014 was $164 Mil. Insight Enterprises Inc's revenue for the three months ended in Mar. 2014 was $1,215 Mil. Therefore, Insight Enterprises Inc's Gross Margin for the quarter that ended in Mar. 2014 was 13.48%.

Insight Enterprises Inc had a gross margin of 13.48% for the quarter that ended in Mar. 2014 => No sustainable competitive advantage

During the past 13 years, the highest Gross Margin of Insight Enterprises Inc was 14.47%. The lowest was 11.42%. And the median was 13.05%.


Definition

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

Insight Enterprises Inc's Gross Profit for the fiscal year that ended in Dec. 2012 is calculated as

Gross Profit (A: Dec. 2012 )=Revenue - Cost of Goods Sold
=5301.441 - 4581.765
=720

Insight Enterprises 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
=1214.53 - 1050.785
=164

Insight Enterprises Inc Gross Profit for the trailing twelve months (TTM) ended in Mar. 2014 was 190.927 (Jun. 2013 ) + 168.668 (Sep. 2013 ) + 181.155 (Dec. 2013 ) + 163.745 (Mar. 2014 ) = $704 Mil.

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

Insight Enterprises 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
=164 / 1214.53
=13.48 %

* 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

Insight Enterprises Inc had a gross margin of 13.48% for the quarter that ended in Mar. 2014 => No sustainable 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.

Insight Enterprises Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Gross_Profit 351375471661664569646709720699

Insight Enterprises Inc Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
Gross_Profit 179170201168180158191169181164
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