Switch to:
Transocean Ltd (NYSE:RIG)
Gross Profit
$2,675 Mil (TTM As of Sep. 2016)

Transocean Ltd's gross profit for the three months ended in Sep. 2016 was $499 Mil. Transocean Ltd's gross profit for the trailing twelve months (TTM) ended in Sep. 2016 was $2,675 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Transocean Ltd's gross profit for the three months ended in Sep. 2016 was $499 Mil. Transocean Ltd's revenue for the three months ended in Sep. 2016 was $903 Mil. Therefore, Transocean Ltd's Gross Margin for the quarter that ended in Sep. 2016 was 55.26%.

Transocean Ltd had a gross margin of 55.26% for the quarter that ended in Sep. 2016 => Durable competitive advantage

During the past 13 years, the highest Gross Margin of Transocean Ltd was 59.99%. The lowest was 23.02%. And the median was 45.71%.


Definition

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

Transocean Ltd'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
=7386 - 2955
=4,431

Transocean Ltd's Gross Profit for the quarter that ended in Sep. 2016 is calculated as

Gross Profit (Q: Sep. 2016 )=Revenue - Cost of Goods Sold
=903 - 404
=499

Transocean Ltd Gross Profit for the trailing twelve months (TTM) ended in Sep. 2016 was 1057 (Dec. 2015 ) + 676 (Mar. 2016 ) + 443 (Jun. 2016 ) + 499 (Sep. 2016 ) = $2,675 Mil.

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

Transocean Ltd's Gross Margin for the quarter that ended in Sep. 2016 is calculated as

Gross Margin (Q: Sep. 2016 )=Gross Profit (Q: Sep. 2016 ) / Revenue (Q: Sep. 2016 )
=(Revenue - Cost of Goods Sold) / Revenue
=499 / 903
=55.26 %

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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

Transocean Ltd had a gross margin of 55.26% for the quarter that ended in Sep. 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 local exchange's currency.

Transocean Ltd Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
Gross_Profit 1,7273,5967,3196,4163,7301,8483,0863,6864,0644,431

Transocean Ltd Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
Gross_Profit 1,1159529279591,6877281,057676443499
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