Switch to:
Westport Innovations Inc (NAS:WPRT)
Gross Profit
$25.8 Mil (TTM As of Mar. 2015)

Westport Innovations Inc's gross profit for the three months ended in Mar. 2015 was $5.4 Mil. Westport Innovations Inc's gross profit for the trailing twelve months (TTM) ended in Mar. 2015 was $25.8 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Westport Innovations Inc's gross profit for the three months ended in Mar. 2015 was $5.4 Mil. Westport Innovations Inc's revenue for the three months ended in Mar. 2015 was $28.0 Mil. Therefore, Westport Innovations Inc's Gross Margin for the quarter that ended in Mar. 2015 was 19.36%.

Westport Innovations Inc had a gross margin of 19.36% for the quarter that ended in Mar. 2015 => No sustainable competitive advantage

During the past 13 years, the highest Gross Margin of Westport Innovations Inc was 100.00%. The lowest was 9.35%. And the median was 31.79%.

Warning Sign:

Westport Innovations Inc gross margin has been in long term decline. The average rate of decline per year is -10.4%.


Definition

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

Westport Innovations 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
=130.569 - 97.923
=32.6

Westport Innovations Inc's Gross Profit for the quarter that ended in Mar. 2015 is calculated as

Gross Profit (Q: Mar. 2015 )=Revenue - Cost of Goods Sold
=28.022 - 22.598
=5.4

Westport Innovations Inc Gross Profit for the trailing twelve months (TTM) ended in Mar. 2015 was 13.601 (Jun. 2014 ) + 7.969 (Sep. 2014 ) + -1.196 (Dec. 2014 ) + 5.424 (Mar. 2015 ) = $25.8 Mil.

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

Westport Innovations Inc's Gross Margin for the quarter that ended in Mar. 2015 is calculated as

Gross Margin (Q: Mar. 2015 )=Gross Profit (Q: Mar. 2015 ) / Revenue (Q: Mar. 2015 )
=(Revenue - Cost of Goods Sold) / Revenue
=5.4 / 28.022
=19.36 %

* 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

Westport Innovations Inc had a gross margin of 19.36% for the quarter that ended in Mar. 2015 => No sustainable 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.

Westport Innovations Inc Annual Data

Mar05Mar06Mar07Mar08Mar09Mar10Mar11Dec12Dec13Dec14
Gross_Profit 8.812.819.221.924.438.757.153.115.332.6

Westport Innovations Inc Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
Gross_Profit 13.48.18.316.1-17.112.313.68.0-1.25.4
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)

GuruFocus Premium Plus Membership

FEEDBACK