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E I du Pont de Nemours & Company (NYSE:DD)
Gross Profit
$13,603 Mil (TTM As of Jun. 2014)

E I du Pont de Nemours & Company's gross profit for the three months ended in Jun. 2014 was $4,115 Mil. E I du Pont de Nemours & Company's gross profit for the trailing twelve months (TTM) ended in Jun. 2014 was $13,603 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 Jun. 2014 was $4,115 Mil. E I du Pont de Nemours & Company's revenue for the three months ended in Jun. 2014 was $10,114 Mil. Therefore, E I du Pont de Nemours & Company's Gross Margin for the quarter that ended in Jun. 2014 was 40.69%.

E I du Pont de Nemours & Company had a gross margin of 40.69% for the quarter that ended in Jun. 2014 => Durable competitive advantage

During the past 13 years, the highest Gross Margin of E I du Pont de Nemours & Company was 37.62%. The lowest was 21.11%. And the median was 30.85%.


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 Jun. 2014 is calculated as

Gross Profit (Q: Jun. 2014 )=Revenue - Cost of Goods Sold
=10114 - 5999
=4,115

E I du Pont de Nemours & Company Gross Profit for the trailing twelve months (TTM) ended in Jun. 2014 was 2640 (Sep. 2013 ) + 2703 (Dec. 2013 ) + 4145 (Mar. 2014 ) + 4115 (Jun. 2014 ) = $13,603 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 Jun. 2014 is calculated as

Gross Margin (Q: Jun. 2014 )=Gross Profit (Q: Jun. 2014 ) / Revenue (Q: Jun. 2014 )
=(Revenue - Cost of Goods Sold) / Revenue
=4,115 / 10114
=40.69 %

* 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 40.69% for the quarter that ended in Jun. 2014 => 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 & Company Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Gross_Profit 7,5798,7908,5427,8136,4467,6209,58710,9059,70613,596

E I du Pont de Nemours & Company Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
Gross_Profit 3,7293,4681,6141,5893,3953,9462,6402,7034,1454,115
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