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Crane Co (NYSE:CR)
Gross Profit
$974 Mil (TTM As of Jun. 2016)

Crane Co's gross profit for the three months ended in Jun. 2016 was $263 Mil. Crane Co's gross profit for the trailing twelve months (TTM) ended in Jun. 2016 was $974 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Crane Co's gross profit for the three months ended in Jun. 2016 was $263 Mil. Crane Co's revenue for the three months ended in Jun. 2016 was $712 Mil. Therefore, Crane Co's Gross Margin for the quarter that ended in Jun. 2016 was 36.94%.

Crane Co had a gross margin of 36.94% for the quarter that ended in Jun. 2016 => Competition eroding margins

During the past 13 years, the highest Gross Margin of Crane Co was 35.78%. The lowest was 17.29%. And the median was 33.79%.


Definition

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

Crane Co'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
=2740.5 - 1786.1
=954

Crane Co's Gross Profit for the quarter that ended in Jun. 2016 is calculated as

Gross Profit (Q: Jun. 2016 )=Revenue - Cost of Goods Sold
=712.2 - 449.1
=263

Crane Co Gross Profit for the trailing twelve months (TTM) ended in Jun. 2016 was 238.2 (Sep. 2015 ) + 239 (Dec. 2015 ) + 233.9 (Mar. 2016 ) + 263.1 (Jun. 2016 ) = $974 Mil.

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

Crane Co's Gross Margin for the quarter that ended in Jun. 2016 is calculated as

Gross Margin (Q: Jun. 2016 )=Gross Profit (Q: Jun. 2016 ) / Revenue (Q: Jun. 2016 )
=(Revenue - Cost of Goods Sold) / Revenue
=263 / 712.2
=36.94 %

* 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

Crane Co had a gross margin of 36.94% for the quarter that ended in Jun. 2016 => Competition eroding margins


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.

Crane Co Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
Gross_Profit 7314538537307428478698841,016954

Crane Co Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
Gross_Profit 254262251249237241238239234263
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