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B/E Aerospace Inc (NAS:BEAV)
Gross Profit
$802 Mil (TTM As of Jun. 2015)

B/E Aerospace Inc's gross profit for the three months ended in Jun. 2015 was $281 Mil. B/E Aerospace Inc's gross profit for the trailing twelve months (TTM) ended in Jun. 2015 was $802 Mil.

Gross Margin is calculated as gross profit divided by its revenue. B/E Aerospace Inc's gross profit for the three months ended in Jun. 2015 was $281 Mil. B/E Aerospace Inc's revenue for the three months ended in Jun. 2015 was $701 Mil. Therefore, B/E Aerospace Inc's Gross Margin for the quarter that ended in Jun. 2015 was 40.04%.

B/E Aerospace Inc had a gross margin of 40.04% for the quarter that ended in Jun. 2015 => Durable competitive advantage

During the past 13 years, the highest Gross Margin of B/E Aerospace Inc was 41.18%. The lowest was 22.10%. And the median was 35.04%.


Definition

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

B/E Aerospace 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
=2599 - 1582.8
=1,016

B/E Aerospace Inc's Gross Profit for the quarter that ended in Jun. 2015 is calculated as

Gross Profit (Q: Jun. 2015 )=Revenue - Cost of Goods Sold
=700.6 - 420.1
=281

B/E Aerospace Inc Gross Profit for the trailing twelve months (TTM) ended in Jun. 2015 was 366.4 (Sep. 2014 ) + -133.5 (Dec. 2014 ) + 288.4 (Mar. 2015 ) + 280.5 (Jun. 2015 ) = $802 Mil.

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

B/E Aerospace Inc's Gross Margin for the quarter that ended in Jun. 2015 is calculated as

Gross Margin (Q: Jun. 2015 )=Gross Profit (Q: Jun. 2015 ) / Revenue (Q: Jun. 2015 )
=(Revenue - Cost of Goods Sold) / Revenue
=281 / 700.6
=40.04 %

* 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

B/E Aerospace Inc had a gross margin of 40.04% for the quarter that ended in Jun. 2015 => 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 own currency.

B/E Aerospace Inc Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
Gross_Profit 2963975707246697219361,1649071,016

B/E Aerospace Inc Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
Gross_Profit 319327342-81262276366-134288281
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