Switch to:
Portland General Electric Co (NYSE:POR)
Gross Profit
$884 Mil (TTM As of Jun. 2014)

Portland General Electric Co's gross profit for the three months ended in Jun. 2014 was $214 Mil. Portland General Electric Co's gross profit for the trailing twelve months (TTM) ended in Jun. 2014 was $884 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. 2014 was $214 Mil. Portland General Electric Co's revenue for the three months ended in Jun. 2014 was $423 Mil. Therefore, Portland General Electric Co's Gross Margin for the quarter that ended in Jun. 2014 was 50.59%.

Portland General Electric Co had a gross margin of 50.59% for the quarter that ended in Jun. 2014 => Durable competitive advantage

During the past 13 years, the highest Gross Margin of Portland General Electric Co was 94.71%. The lowest was 37.80%. And the median was 88.61%.


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. 2013 is calculated as

Gross Profit (A: Dec. 2013 )=Revenue - Cost of Goods Sold
=1810 - 982
=828

Portland General Electric Co's Gross Profit for the quarter that ended in Jun. 2014 is calculated as

Gross Profit (Q: Jun. 2014 )=Revenue - Cost of Goods Sold
=423 - 209
=214

Portland General Electric Co Gross Profit for the trailing twelve months (TTM) ended in Jun. 2014 was 191 (Sep. 2013 ) + 224 (Dec. 2013 ) + 255 (Mar. 2014 ) + 214 (Jun. 2014 ) = $884 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. 2014 is calculated as

Gross Margin (Q: Jun. 2014 )=Gross Profit (Q: Jun. 2014 ) / Revenue (Q: Jun. 2014 )
=(Revenue - Cost of Goods Sold) / Revenue
=214 / 423
=50.59 %

* 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 50.59% for the quarter that ended in Jun. 2014 => 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

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Gross_Profit 1,327775757864698682780852868828

Portland General Electric Co Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
Gross_Profit 231206219212230183191224255214
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