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E I du Pont de Nemours & Company (NYSE:DD)
Gross Profit
$13,951 Mil (TTM As of Sep. 2014)

E I du Pont de Nemours & Company's gross profit for the three months ended in Sep. 2014 was $2,988 Mil. E I du Pont de Nemours & Company's gross profit for the trailing twelve months (TTM) ended in Sep. 2014 was $13,951 Mil.

Gross Margin is calculated as gross profit divided by its revenue. E I du Pont de Nemours & Company's gross profit for the three months ended in Sep. 2014 was $2,988 Mil. E I du Pont de Nemours & Company's revenue for the three months ended in Sep. 2014 was $7,868 Mil. Therefore, E I du Pont de Nemours & Company's Gross Margin for the quarter that ended in Sep. 2014 was 37.98%.

E I du Pont de Nemours & Company had a gross margin of 37.98% for the quarter that ended in Sep. 2014 => Competition eroding margins

During the past 13 years, the highest Gross Margin of E I du Pont de Nemours & Company was 39.00%. The lowest was 25.14%. And the median was 32.50%.


Definition

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

E I du Pont de Nemours & Company'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
=36144 - 22548
=13,596

E I du Pont de Nemours & Company's Gross Profit for the quarter that ended in Sep. 2014 is calculated as

Gross Profit (Q: Sep. 2014 )=Revenue - Cost of Goods Sold
=7868 - 4880
=2,988

E I du Pont de Nemours & Company Gross Profit for the trailing twelve months (TTM) ended in Sep. 2014 was 2703 (Dec. 2013 ) + 4145 (Mar. 2014 ) + 4115 (Jun. 2014 ) + 2988 (Sep. 2014 ) = $13,951 Mil.

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

E I du Pont de Nemours & Company'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
=2,988 / 7868
=37.98 %

* 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

E I du Pont de Nemours & Company had a gross margin of 37.98% for the quarter that ended in Sep. 2014 => 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.

E I du Pont de Nemours & Company Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Gross_Profit 7,5798,8088,5427,6328,2887,6208,3259,54913,77213,596

E I du Pont de Nemours & Company Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
Gross_Profit 4,3642,5572,5924,3073,9472,6392,7034,1454,1152,988
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