Switch to:
Portland General Electric Co (NYSE:POR)
Gross Profit
$995 Mil (TTM As of Jun. 2016)

Portland General Electric Co's gross profit for the three months ended in Jun. 2016 was $238 Mil. Portland General Electric Co's gross profit for the trailing twelve months (TTM) ended in Jun. 2016 was $995 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Portland General Electric Co's gross profit for the three months ended in Jun. 2016 was $238 Mil. Portland General Electric Co's revenue for the three months ended in Jun. 2016 was $428 Mil. Therefore, Portland General Electric Co's Gross Margin for the quarter that ended in Jun. 2016 was 55.61%.

Portland General Electric Co had a gross margin of 55.61% for the quarter that ended in Jun. 2016 => Durable competitive advantage

During the past 13 years, the highest Gross Margin of Portland General Electric Co was 51.16%. The lowest was 37.80%. And the median was 47.54%.


Definition

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

Portland General Electric Co'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
=1898 - 927
=971

Portland General Electric Co's Gross Profit for the quarter that ended in Jun. 2016 is calculated as

Gross Profit (Q: Jun. 2016 )=Revenue - Cost of Goods Sold
=428 - 190
=238

Portland General Electric Co Gross Profit for the trailing twelve months (TTM) ended in Jun. 2016 was 231 (Sep. 2015 ) + 254 (Dec. 2015 ) + 272 (Mar. 2016 ) + 238 (Jun. 2016 ) = $995 Mil.

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

Portland General Electric Co's Gross Margin for the quarter that ended in Jun. 2016 is calculated as

Gross Margin (Q: Jun. 2016 )=Gross Profit (Q: Jun. 2016 ) / Revenue (Q: Jun. 2016 )
=(Revenue - Cost of Goods Sold) / Revenue
=238 / 428
=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

Portland General Electric Co had a gross margin of 55.61% for the quarter that ended in Jun. 2016 => 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.

Portland General Electric Co Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
Gross_Profit 757864698682780852868828930971

Portland General Electric Co Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
Gross_Profit 255214222239250236231254272238
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)
FEEDBACK