Switch to:
Expeditors International of Washington Inc (NAS:EXPD)
Gross Profit
$1,941 Mil (TTM As of Sep. 2014)

Expeditors International of Washington Inc's gross profit for the three months ended in Sep. 2014 was $513 Mil. Expeditors International of Washington Inc's gross profit for the trailing twelve months (TTM) ended in Sep. 2014 was $1,941 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Expeditors International of Washington Inc's gross profit for the three months ended in Sep. 2014 was $513 Mil. Expeditors International of Washington Inc's revenue for the three months ended in Sep. 2014 was $1,705 Mil. Therefore, Expeditors International of Washington Inc's Gross Margin for the quarter that ended in Sep. 2014 was 30.10%.

Expeditors International of Washington Inc had a gross margin of 30.10% for the quarter that ended in Sep. 2014 => Competition eroding margins

During the past 13 years, the highest Gross Margin of Expeditors International of Washington Inc was 35.26%. The lowest was 21.28%. And the median was 28.02%.


Definition

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

Expeditors International of Washington 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
=6080.257 - 4197.404
=1,883

Expeditors International of Washington Inc's Gross Profit for the quarter that ended in Sep. 2014 is calculated as

Gross Profit (Q: Sep. 2014 )=Revenue - Cost of Goods Sold
=1705.105 - 1191.849
=513

Expeditors International of Washington Inc Gross Profit for the trailing twelve months (TTM) ended in Sep. 2014 was 478.072 (Dec. 2013 ) + 464.586 (Mar. 2014 ) + 484.714 (Jun. 2014 ) + 513.256 (Sep. 2014 ) = $1,941 Mil.

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

Expeditors International of Washington Inc'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
=513 / 1705.105
=30.10 %

* 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

Expeditors International of Washington Inc had a gross margin of 30.10% 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.

Expeditors International of Washington Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Gross_Profit 7811,1141,3531,5211,6031,3831,6931,8961,8351,883

Expeditors International of Washington Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
Gross_Profit 454465470448472485478465485513
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK