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YRC Worldwide Inc (NAS:YRCW)
Gross Profit
$3,357 Mil (TTM As of Sep. 2016)

YRC Worldwide Inc's gross profit for the three months ended in Sep. 2016 was $858 Mil. YRC Worldwide Inc's gross profit for the trailing twelve months (TTM) ended in Sep. 2016 was $3,357 Mil.

Gross Margin is calculated as gross profit divided by its revenue. YRC Worldwide Inc's gross profit for the three months ended in Sep. 2016 was $858 Mil. YRC Worldwide Inc's revenue for the three months ended in Sep. 2016 was $1,221 Mil. Therefore, YRC Worldwide Inc's Gross Margin for the quarter that ended in Sep. 2016 was 70.22%.

YRC Worldwide Inc had a gross margin of 70.22% for the quarter that ended in Sep. 2016 => Durable competitive advantage

During the past 13 years, the highest Gross Margin of YRC Worldwide Inc was 71.54%. 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. 2014 is calculated as

Gross Profit (A: Dec. 2014 )=Revenue - Cost of Goods Sold
=5068.8 - 1701.6
=3,367

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

Gross Profit (Q: Sep. 2016 )=Revenue - Cost of Goods Sold
=1221.3 - 363.7
=858

YRC Worldwide Inc Gross Profit for the trailing twelve months (TTM) ended in Sep. 2016 was 812.3 (Dec. 2015 ) + 814.6 (Mar. 2016 ) + 872.3 (Jun. 2016 ) + 857.6 (Sep. 2016 ) = $3,357 Mil.

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

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

Gross Margin (Q: Sep. 2016 )=Gross Profit (Q: Sep. 2016 ) / Revenue (Q: Sep. 2016 )
=(Revenue - Cost of Goods Sold) / Revenue
=858 / 1221.3
=70.22 %

* 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 70.22% for the quarter that ended in Sep. 2016 => 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 local exchange's currency.

YRC Worldwide Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
Gross_Profit 6,5736,6675,8743,4002,9303,1393,2333,2363,3673,393

YRC Worldwide Inc Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
Gross_Profit 866880826825878878812815872858
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