Switch to:
Helmerich & Payne Inc (NYSE:HP)
Gross Profit
$1,669 Mil (TTM As of Jun. 2015)

Helmerich & Payne Inc's gross profit for the three months ended in Jun. 2015 was $308 Mil. Helmerich & Payne Inc's gross profit for the trailing twelve months (TTM) ended in Jun. 2015 was $1,669 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Helmerich & Payne Inc's gross profit for the three months ended in Jun. 2015 was $308 Mil. Helmerich & Payne Inc's revenue for the three months ended in Jun. 2015 was $660 Mil. Therefore, Helmerich & Payne Inc's Gross Margin for the quarter that ended in Jun. 2015 was 46.69%.

Helmerich & Payne Inc had a gross margin of 46.69% for the quarter that ended in Jun. 2015 => Durable competitive advantage

During the past 13 years, the highest Gross Margin of Helmerich & Payne Inc was 48.76%. The lowest was 29.09%. And the median was 43.26%.


Definition

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

Helmerich & Payne Inc's Gross Profit for the fiscal year that ended in Sep. 2014 is calculated as

Gross Profit (A: Sep. 2014 )=Revenue - Cost of Goods Sold
=3719.707 - 2009.912
=1,710

Helmerich & Payne Inc's Gross Profit for the quarter that ended in Jun. 2015 is calculated as

Gross Profit (Q: Jun. 2015 )=Revenue - Cost of Goods Sold
=659.694 - 351.67
=308

Helmerich & Payne Inc Gross Profit for the trailing twelve months (TTM) ended in Jun. 2015 was 444.58 (Sep. 2014 ) + 502.342 (Dec. 2014 ) + 413.724 (Mar. 2015 ) + 308.024 (Jun. 2015 ) = $1,669 Mil.

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

Helmerich & Payne Inc'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
=308 / 659.694
=46.69 %

* 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

Helmerich & Payne Inc had a gross margin of 46.69% 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.

Helmerich & Payne Inc Annual Data

Sep05Sep06Sep07Sep08Sep09Sep10Sep11Sep12Sep13Sep14
Gross_Profit 3165637679508998031,1111,4011,5351,710

Helmerich & Payne Inc Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
Gross_Profit 377389391415413437445502414308
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)

GuruFocus Premium Plus Membership

FEEDBACK