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Hess Corp (NYSE:HES)
Gross Profit
$4,989 Mil (TTM As of Jun. 2015)

Hess Corp's gross profit for the three months ended in Jun. 2015 was $1,031 Mil. Hess Corp's gross profit for the trailing twelve months (TTM) ended in Jun. 2015 was $4,989 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Hess Corp's gross profit for the three months ended in Jun. 2015 was $1,031 Mil. Hess Corp's revenue for the three months ended in Jun. 2015 was $1,935 Mil. Therefore, Hess Corp's Gross Margin for the quarter that ended in Jun. 2015 was 55.61%.

Hess Corp had a gross margin of 55.61% for the quarter that ended in Jun. 2015 => Durable competitive advantage

During the past 13 years, the highest Gross Margin of Hess Corp was 57.44%. The lowest was 16.95%. And the median was 23.35%.


Definition

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

Hess Corp's Gross Profit for the fiscal year that ended in Dec. 2014 is calculated as

Gross Profit (A: Dec. 2014 )=Revenue - Cost of Goods Sold
=11439 - 3753
=7,686

Hess Corp's Gross Profit for the quarter that ended in Jun. 2015 is calculated as

Gross Profit (Q: Jun. 2015 )=Revenue - Cost of Goods Sold
=1935 - 859
=1,076

Hess Corp Gross Profit for the trailing twelve months (TTM) ended in Jun. 2015 was 1652 (Sep. 2014 ) + 1845 (Dec. 2014 ) + 461 (Mar. 2015 ) + 1031 (Jun. 2015 ) = $4,989 Mil.

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

Hess Corp's Gross Margin for the quarter that ended in Jun. 2015 is calculated as

Gross Margin (Q: Jun. 2015 )=Gross Profit (Q: Jun. 2015 ) / Revenue (Q: Jun. 2015 )
=(Revenue - Cost of Goods Sold) / Revenue
=1,076 / 1935
=55.61 %

* 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

Hess Corp had a gross margin of 55.61% for the quarter that ended in Jun. 2015 => 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.

Hess Corp Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
Gross_Profit 4,3026,3536,9789,6246,8039,2828,7458,9527,3976,571

Hess Corp Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
Gross_Profit 1,9361,7831,6192,0591,5522,5391,6521,8454611,031
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