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Trinity Industries Inc (NYSE:TRN)
Gross Profit
\$1,449 Mil (TTM As of Jun. 2016)

Trinity Industries Inc's gross profit for the three months ended in Jun. 2016 was \$287 Mil. Trinity Industries Inc's gross profit for the trailing twelve months (TTM) ended in Jun. 2016 was \$1,449 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. 2016 was \$287 Mil. Trinity Industries Inc's revenue for the three months ended in Jun. 2016 was \$1,185 Mil. Therefore, Trinity Industries Inc's Gross Margin for the quarter that ended in Jun. 2016 was 24.24%.

Trinity Industries Inc had a gross margin of 24.24% for the quarter that ended in Jun. 2016 => Competition eroding margins

During the past 13 years, the highest Gross Margin of Trinity Industries Inc was 26.53%. The lowest was 18.35%. And the median was 19.93%.

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. 2014 is calculated as

 Gross Profit (A: Dec. 2014 ) = Revenue - Cost of Goods Sold = 6170 - 4619.8 = 1,550

Trinity Industries Inc's Gross Profit for the quarter that ended in Jun. 2016 is calculated as

 Gross Profit (Q: Jun. 2016 ) = Revenue - Cost of Goods Sold = 1184.9 - 897.7 = 287

Trinity Industries Inc Gross Profit for the trailing twelve months (TTM) ended in Jun. 2016 was 432.8 (Sep. 2015 ) + 430.9 (Dec. 2015 ) + 298 (Mar. 2016 ) + 287.2 (Jun. 2016 ) = \$1,449 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. 2016 is calculated as

 Gross Margin (Q: Jun. 2016 ) = Gross Profit (Q: Jun. 2016 ) / Revenue (Q: Jun. 2016 ) = (Revenue - Cost of Goods Sold) / Revenue = 287 / 1184.9 = 24.24 %

* 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 24.24% for the quarter that ended in Jun. 2016 => Competition eroding margins

Related Terms

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

 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Gross_Profit 591 742 803 480 480 592 760 1,043 1,550 1,737

Trinity Industries Inc Quarterly Data

 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Gross_Profit 387 387 391 386 416 457 433 431 298 287
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