Switch to:
GuruFocus has detected 1 Warning Sign with YRC Worldwide Inc \$YRCW.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.
YRC Worldwide Inc (NAS:YRCW)
Gross Profit
\$3,345 Mil (TTM As of Dec. 2016)

YRC Worldwide Inc's gross profit for the three months ended in Dec. 2016 was \$800 Mil. YRC Worldwide Inc's gross profit for the trailing twelve months (TTM) ended in Dec. 2016 was \$3,345 Mil.

Gross Margin is calculated as gross profit divided by its revenue. YRC Worldwide Inc's gross profit for the three months ended in Dec. 2016 was \$800 Mil. YRC Worldwide Inc's revenue for the three months ended in Dec. 2016 was \$1,148 Mil. Therefore, YRC Worldwide Inc's Gross Margin for the quarter that ended in Dec. 2016 was 69.69%.

YRC Worldwide Inc had a gross margin of 69.69% for the quarter that ended in Dec. 2016 => Durable competitive advantage

During the past 13 years, the highest Gross Margin of YRC Worldwide Inc was 71.20%. The lowest was 64.35%. And the median was 66.47%.

Definition

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

YRC Worldwide Inc's Gross Profit for the fiscal year that ended in Dec. 2016 is calculated as

 Gross Profit (A: Dec. 2016 ) = Revenue - Cost of Goods Sold = 4697.5 - 1352.7 = 3,345

YRC Worldwide Inc's Gross Profit for the quarter that ended in Dec. 2016 is calculated as

 Gross Profit (Q: Dec. 2016 ) = Revenue - Cost of Goods Sold = 1148.3 - 348 = 800

YRC Worldwide Inc Gross Profit for the trailing twelve months (TTM) ended in Dec. 2016 was 814.6 (Mar. 2016 ) + 872.3 (Jun. 2016 ) + 857.6 (Sep. 2016 ) + 800.3 (Dec. 2016 ) = \$3,345 Mil.

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

YRC Worldwide Inc's Gross Margin for the quarter that ended in Dec. 2016 is calculated as

 Gross Margin (Q: Dec. 2016 ) = Gross Profit (Q: Dec. 2016 ) / Revenue (Q: Dec. 2016 ) = (Revenue - Cost of Goods Sold) / Revenue = 800 / 1148.3 = 69.69 %

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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

YRC Worldwide Inc had a gross margin of 69.69% for the quarter that ended in Dec. 2016 => Durable competitive advantage

Related Terms

Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

YRC Worldwide Inc Annual Data

 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Gross_Profit 6,230 5,881 3,400 2,930 3,139 3,233 3,236 3,367 3,393 3,345

YRC Worldwide Inc Quarterly Data

 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Gross_Profit 880 826 825 878 878 812 815 872 858 800
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to \$400 per referral. ( Learn More)