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Newell Brands Inc (NYSE:NWL)
Gross Profit
$2,305 Mil (TTM As of Dec. 2015)

Newell Brands Inc's gross profit for the three months ended in Dec. 2015 was $597 Mil. Newell Brands Inc's gross profit for the trailing twelve months (TTM) ended in Dec. 2015 was $2,305 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Newell Brands Inc's gross profit for the three months ended in Dec. 2015 was $597 Mil. Newell Brands Inc's revenue for the three months ended in Dec. 2015 was $1,561 Mil. Therefore, Newell Brands Inc's Gross Margin for the quarter that ended in Dec. 2015 was 38.26%.

Newell Brands Inc had a gross margin of 38.26% for the quarter that ended in Dec. 2015 => Competition eroding margins

During the past 13 years, the highest Gross Margin of Newell Brands Inc was 38.96%. The lowest was 32.81%. And the median was 37.65%.


Definition

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

Newell Brands Inc's Gross Profit for the fiscal year that ended in Dec. 2015 is calculated as

Gross Profit (A: Dec. 2015 )=Revenue - Cost of Goods Sold
=5915.7 - 3611.1
=2,305

Newell Brands Inc's Gross Profit for the quarter that ended in Dec. 2015 is calculated as

Gross Profit (Q: Dec. 2015 )=Revenue - Cost of Goods Sold
=1560.8 - 963.6
=597

Newell Brands Inc Gross Profit for the trailing twelve months (TTM) ended in Dec. 2015 was 487.5 (Mar. 2015 ) + 621 (Jun. 2015 ) + 598.9 (Sep. 2015 ) + 597.2 (Dec. 2015 ) = $2,305 Mil.

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

Newell Brands Inc's Gross Margin for the quarter that ended in Dec. 2015 is calculated as

Gross Margin (Q: Dec. 2015 )=Gross Profit (Q: Dec. 2015 ) / Revenue (Q: Dec. 2015 )
=(Revenue - Cost of Goods Sold) / Revenue
=597 / 1560.8
=38.26 %

* 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

Newell Brands Inc had a gross margin of 38.26% for the quarter that ended in Dec. 2015 => 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.

Newell Brands Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
Gross_Profit 2,0702,2572,1232,0502,1712,2052,2292,1782,2032,305

Newell Brands Inc Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
Gross_Profit 553542457596577574488621599597
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