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Brookfield Infrastructure Partners LP (NYSE:BIP)
Gross Profit
$1,057 Mil (TTM As of Dec. 2015)

Brookfield Infrastructure Partners LP's gross profit for the three months ended in Dec. 2015 was $256 Mil. Brookfield Infrastructure Partners LP's gross profit for the trailing twelve months (TTM) ended in Dec. 2015 was $1,057 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 Dec. 2015 was $256 Mil. Brookfield Infrastructure Partners LP's revenue for the three months ended in Dec. 2015 was $455 Mil. Therefore, Brookfield Infrastructure Partners LP's Gross Margin for the quarter that ended in Dec. 2015 was 56.26%.

Brookfield Infrastructure Partners LP had a gross margin of 56.26% for the quarter that ended in Dec. 2015 => Durable competitive advantage

During the past 9 years, the highest Gross Margin of Brookfield Infrastructure Partners LP was 68.69%. The lowest was 29.34%. And the median was 52.30%.


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. 2015 is calculated as

Gross Profit (A: Dec. 2015 )=Revenue - Cost of Goods Sold
=1855 - 798
=1,057

Brookfield Infrastructure Partners LP's Gross Profit for the quarter that ended in Dec. 2015 is calculated as

Gross Profit (Q: Dec. 2015 )=Revenue - Cost of Goods Sold
=455 - 199
=256

Brookfield Infrastructure Partners LP Gross Profit for the trailing twelve months (TTM) ended in Dec. 2015 was 263 (Mar. 2015 ) + 269 (Jun. 2015 ) + 269 (Sep. 2015 ) + 256 (Dec. 2015 ) = $1,057 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 Dec. 2015 is calculated as

Gross Margin (Q: Dec. 2015 )=Gross Profit (Q: Dec. 2015 ) / Revenue (Q: Dec. 2015 )
=(Revenue - Cost of Goods Sold) / Revenue
=256 / 455
=56.26 %

* 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 56.26% for the quarter that ended in Dec. 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.

Brookfield Infrastructure Partners LP Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
Gross_Profit 0023151867379101,0031,0781,057

Brookfield Infrastructure Partners LP Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
Gross_Profit 244258268273275262263269269256
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