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E.I. du Pont de Nemours & Co (NYSE:DD)
Gross Profit
$11,055 Mil (TTM As of Mar. 2016)

E.I. du Pont de Nemours & Co's gross profit for the three months ended in Mar. 2016 was $3,535 Mil. E.I. du Pont de Nemours & Co's gross profit for the trailing twelve months (TTM) ended in Mar. 2016 was $11,055 Mil.

Gross Margin is calculated as gross profit divided by its revenue. E.I. du Pont de Nemours & Co's gross profit for the three months ended in Mar. 2016 was $3,535 Mil. E.I. du Pont de Nemours & Co's revenue for the three months ended in Mar. 2016 was $7,777 Mil. Therefore, E.I. du Pont de Nemours & Co's Gross Margin for the quarter that ended in Mar. 2016 was 45.45%.

E.I. du Pont de Nemours & Co had a gross margin of 45.45% for the quarter that ended in Mar. 2016 => Durable competitive advantage

During the past 13 years, the highest Gross Margin of E.I. du Pont de Nemours & Co was 41.49%. The lowest was 21.11%. And the median was 28.73%.


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 & 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
=25827 - 15112
=10,715

E.I. du Pont de Nemours & Co's Gross Profit for the quarter that ended in Mar. 2016 is calculated as

Gross Profit (Q: Mar. 2016 )=Revenue - Cost of Goods Sold
=7777 - 4242
=3,535

E.I. du Pont de Nemours & Co Gross Profit for the trailing twelve months (TTM) ended in Mar. 2016 was 3598 (Jun. 2015 ) + 1887 (Sep. 2015 ) + 2035 (Dec. 2015 ) + 3535 (Mar. 2016 ) = $11,055 Mil.

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

E.I. du Pont de Nemours & Co's Gross Margin for the quarter that ended in Mar. 2016 is calculated as

Gross Margin (Q: Mar. 2016 )=Gross Profit (Q: Mar. 2016 ) / Revenue (Q: Mar. 2016 )
=(Revenue - Cost of Goods Sold) / Revenue
=3,535 / 7777
=45.45 %

* 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 & Co had a gross margin of 45.45% for the quarter that ended in Mar. 2016 => 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.

E.I. du Pont de Nemours & Co Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
Gross_Profit 8,5427,8136,4467,6209,58710,9059,70613,59614,34310,715

E.I. du Pont de Nemours & Co Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
Gross_Profit 8344,1454,1152,5712,7043,5203,5981,8872,0353,535
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