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WEC Energy Group Inc (NYSE:WEC)
Gross Profit
$2,740 Mil (TTM As of Jun. 2015)

WEC Energy Group Inc's gross profit for the three months ended in Jun. 2015 was $638 Mil. WEC Energy Group Inc's gross profit for the trailing twelve months (TTM) ended in Jun. 2015 was $2,740 Mil.

Gross Margin is calculated as gross profit divided by its revenue. WEC Energy Group Inc's gross profit for the three months ended in Jun. 2015 was $638 Mil. WEC Energy Group Inc's revenue for the three months ended in Jun. 2015 was $991 Mil. Therefore, WEC Energy Group Inc's Gross Margin for the quarter that ended in Jun. 2015 was 64.39%.

WEC Energy Group Inc had a gross margin of 64.39% for the quarter that ended in Jun. 2015 => Durable competitive advantage

During the past 13 years, the highest Gross Margin of WEC Energy Group Inc was 83.20%. The lowest was 44.41%. And the median was 76.16%.


Definition

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

WEC Energy Group Inc's Gross Profit for the fiscal year that ended in Dec. 2014 is calculated as

Gross Profit (A: Dec. 2014 )=Revenue - Cost of Goods Sold
=4997.1 - 2259.4
=2,738

WEC Energy Group 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
=991.2 - 353
=638

WEC Energy Group Inc Gross Profit for the trailing twelve months (TTM) ended in Jun. 2015 was 625.9 (Sep. 2014 ) + 701.6 (Dec. 2014 ) + 774 (Mar. 2015 ) + 638.2 (Jun. 2015 ) = $2,740 Mil.

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

WEC Energy Group 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
=638 / 991.2
=64.39 %

* 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

WEC Energy Group Inc had a gross margin of 64.39% 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.

WEC Energy Group Inc Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
Gross_Profit 3,0393,1943,2411,9662,1292,3512,5882,6022,6922,738

WEC Energy Group Inc Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
Gross_Profit 734621653684785625626702774638
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