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C.H. Robinson Worldwide Inc (NAS:CHRW)
Gross Profit
\$2,287 Mil (TTM As of Sep. 2016)

C.H. Robinson Worldwide Inc's gross profit for the three months ended in Sep. 2016 was \$558 Mil. C.H. Robinson Worldwide Inc's gross profit for the trailing twelve months (TTM) ended in Sep. 2016 was \$2,287 Mil.

Gross Margin is calculated as gross profit divided by its revenue. C.H. Robinson Worldwide Inc's gross profit for the three months ended in Sep. 2016 was \$558 Mil. C.H. Robinson Worldwide Inc's revenue for the three months ended in Sep. 2016 was \$3,356 Mil. Therefore, C.H. Robinson Worldwide Inc's Gross Margin for the quarter that ended in Sep. 2016 was 16.64%.

C.H. Robinson Worldwide Inc had a gross margin of 16.64% for the quarter that ended in Sep. 2016 => No sustainable competitive advantage

During the past 13 years, the highest Gross Margin of C.H. Robinson Worldwide Inc was 18.24%. The lowest was 14.40%. And the median was 15.93%.

Definition

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

C.H. Robinson Worldwide Inc'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 = 13476.084 - 11207.604 = 2,268

C.H. Robinson 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 = 3355.754 - 2797.292 = 558

C.H. Robinson Worldwide Inc Gross Profit for the trailing twelve months (TTM) ended in Sep. 2016 was 570.777 (Dec. 2015 ) + 563.335 (Mar. 2016 ) + 594.215 (Jun. 2016 ) + 558.462 (Sep. 2016 ) = \$2,287 Mil.

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

C.H. Robinson 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 = 558 / 3355.754 = 16.64 %

* 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

C.H. Robinson Worldwide Inc had a gross margin of 16.64% for the quarter that ended in Sep. 2016 => No sustainable 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.

C.H. Robinson Worldwide Inc Annual Data

 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Gross_Profit 1,083 1,244 1,375 1,382 1,468 1,633 1,718 1,836 2,008 2,268

C.H. Robinson Worldwide Inc Quarterly Data

 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Gross_Profit 521 528 502 525 584 589 571 563 594 558
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