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Trinity Industries Inc (NYSE:TRN)
Gross Profit
$1,341 Mil (TTM As of Jun. 2014)

Trinity Industries Inc's gross profit for the three months ended in Jun. 2014 was $387 Mil. Trinity Industries Inc's gross profit for the trailing twelve months (TTM) ended in Jun. 2014 was $1,341 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Trinity Industries Inc's gross profit for the three months ended in Jun. 2014 was $387 Mil. Trinity Industries Inc's revenue for the three months ended in Jun. 2014 was $1,485 Mil. Therefore, Trinity Industries Inc's Gross Margin for the quarter that ended in Jun. 2014 was 26.06%.

Trinity Industries Inc had a gross margin of 26.06% for the quarter that ended in Jun. 2014 => Competition eroding margins

During the past 12 years, the highest Gross Margin of Trinity Industries Inc was 23.89%. The lowest was 10.83%. And the median was 19.35%.


Definition

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

Trinity Industries 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
=4365.3 - 3322.3
=1,043

Trinity Industries Inc's Gross Profit for the quarter that ended in Jun. 2014 is calculated as

Gross Profit (Q: Jun. 2014 )=Revenue - Cost of Goods Sold
=1485.3 - 1098.3
=387

Trinity Industries Inc Gross Profit for the trailing twelve months (TTM) ended in Jun. 2014 was 274 (Sep. 2013 ) + 293.3 (Dec. 2013 ) + 386.5 (Mar. 2014 ) + 387 (Jun. 2014 ) = $1,341 Mil.

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

Trinity Industries Inc's Gross Margin for the quarter that ended in Jun. 2014 is calculated as

Gross Margin (Q: Jun. 2014 )=Gross Profit (Q: Jun. 2014 ) / Revenue (Q: Jun. 2014 )
=(Revenue - Cost of Goods Sold) / Revenue
=387 / 1485.3
=26.06 %

* 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

Trinity Industries Inc had a gross margin of 26.06% for the quarter that ended in Jun. 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.

Trinity Industries Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Gross_Profit 3965785917428034804405817601,043

Trinity Industries Inc Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
Gross_Profit 166207179212229254274293387387
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