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Brookfield Infrastructure Partners LP (NYSE:BIP)
Gross Profit
$1,074 Mil (TTM As of Sep. 2014)

Brookfield Infrastructure Partners LP's gross profit for the three months ended in Sep. 2014 was $275 Mil. Brookfield Infrastructure Partners LP's gross profit for the trailing twelve months (TTM) ended in Sep. 2014 was $1,074 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Brookfield Infrastructure Partners LP's gross profit for the three months ended in Sep. 2014 was $275 Mil. Brookfield Infrastructure Partners LP's revenue for the three months ended in Sep. 2014 was $491 Mil. Therefore, Brookfield Infrastructure Partners LP's Gross Margin for the quarter that ended in Sep. 2014 was 56.01%.

Brookfield Infrastructure Partners LP had a gross margin of 56.01% for the quarter that ended in Sep. 2014 => Durable competitive advantage

During the past 7 years, the highest Gross Margin of Brookfield Infrastructure Partners LP was 68.69%. The lowest was 29.34%. And the median was 47.54%.


Definition

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

Brookfield Infrastructure Partners LP'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
=1826 - 823
=1,003

Brookfield Infrastructure Partners LP's Gross Profit for the quarter that ended in Sep. 2014 is calculated as

Gross Profit (Q: Sep. 2014 )=Revenue - Cost of Goods Sold
=491 - 216
=275

Brookfield Infrastructure Partners LP Gross Profit for the trailing twelve months (TTM) ended in Sep. 2014 was 258 (Dec. 2013 ) + 268 (Mar. 2014 ) + 273 (Jun. 2014 ) + 275 (Sep. 2014 ) = $1,074 Mil.

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

Brookfield Infrastructure Partners LP's Gross Margin for the quarter that ended in Sep. 2014 is calculated as

Gross Margin (Q: Sep. 2014 )=Gross Profit (Q: Sep. 2014 ) / Revenue (Q: Sep. 2014 )
=(Revenue - Cost of Goods Sold) / Revenue
=275 / 491
=56.01 %

* 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

Brookfield Infrastructure Partners LP had a gross margin of 56.01% for the quarter that ended in Sep. 2014 => 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.

Brookfield Infrastructure Partners LP Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Gross_Profit 000023151867379101,003

Brookfield Infrastructure Partners LP Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
Gross_Profit 222214263241260244258268273275
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