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EMCOR Group, Inc. (NYSE:EME)
Gross Profit
$837 Mil (TTM As of Mar. 2014)

EMCOR Group, Inc.'s gross profit for the three months ended in Mar. 2014 was $215 Mil. EMCOR Group, Inc.'s gross profit for the trailing twelve months (TTM) ended in Mar. 2014 was $837 Mil.

Gross Margin is calculated as gross profit divided by its revenue. EMCOR Group, Inc.'s gross profit for the three months ended in Mar. 2014 was $215 Mil. EMCOR Group, Inc.'s revenue for the three months ended in Mar. 2014 was $1,599 Mil. Therefore, EMCOR Group, Inc.'s Gross Margin for the quarter that ended in Mar. 2014 was 13.46%.

EMCOR Group, Inc. had a gross margin of 13.46% for the quarter that ended in Mar. 2014 => No sustainable competitive advantage

During the past 13 years, the highest Gross Margin of EMCOR Group, Inc. was 14.87%. The lowest was 9.43%. And the median was 11.27%.

Warning Sign:

EMCOR Group, Inc. gross margin has been in long term decline. The average rate of decline per year is -2%.


Definition

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

EMCOR Group, Inc.'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
=6417.158 - 5604.1
=813

EMCOR Group, Inc.'s Gross Profit for the quarter that ended in Mar. 2014 is calculated as

Gross Profit (Q: Mar. 2014 )=Revenue - Cost of Goods Sold
=1599.385 - 1384.174
=215

EMCOR Group, Inc. Gross Profit for the trailing twelve months (TTM) ended in Mar. 2014 was 181.535 (Jun. 2013 ) + 206.31 (Sep. 2013 ) + 234.075 (Dec. 2013 ) + 215.211 (Mar. 2014 ) = $837 Mil.

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

EMCOR Group, Inc.'s Gross Margin for the quarter that ended in Mar. 2014 is calculated as

Gross Margin (Q: Mar. 2014 )=Gross Profit (Q: Mar. 2014 ) / Revenue (Q: Mar. 2014 )
=(Revenue - Cost of Goods Sold) / Revenue
=215 / 1599.385
=13.46 %

* 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

EMCOR Group, Inc. had a gross margin of 13.46% for the quarter that ended in Mar. 2014 => No sustainable 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.

EMCOR Group, Inc. Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Gross_Profit 443485552703887825694734806813

EMCOR Group, Inc. Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
Gross_Profit 214181194203228191182206234215
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