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Exxon Mobil Corp (NYSE:XOM)
Gross Profit
$56,014 Mil (TTM As of Sep. 2016)

Exxon Mobil Corp's gross profit for the three months ended in Sep. 2016 was $22,933 Mil. Exxon Mobil Corp's gross profit for the trailing twelve months (TTM) ended in Sep. 2016 was $56,014 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Exxon Mobil Corp's gross profit for the three months ended in Sep. 2016 was $22,933 Mil. Exxon Mobil Corp's revenue for the three months ended in Sep. 2016 was $58,677 Mil. Therefore, Exxon Mobil Corp's Gross Margin for the quarter that ended in Sep. 2016 was 39.08%.

Exxon Mobil Corp had a gross margin of 39.08% for the quarter that ended in Sep. 2016 => Competition eroding margins

During the past 13 years, the highest Gross Margin of Exxon Mobil Corp was 43.53%. The lowest was 24.91%. And the median was 30.94%.

Warning Sign:

Exxon Mobil Corp gross margin has been in long term decline. The average rate of decline per year is -1.5%.


Definition

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

Exxon Mobil Corp'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
=411939 - 296173
=115,766

Exxon Mobil Corp's Gross Profit for the quarter that ended in Sep. 2016 is calculated as

Gross Profit (Q: Sep. 2016 )=Revenue - Cost of Goods Sold
=58677 - 35744
=22,933

Exxon Mobil Corp Gross Profit for the trailing twelve months (TTM) ended in Sep. 2016 was 404 (Dec. 2015 ) + 15624 (Mar. 2016 ) + 17053 (Jun. 2016 ) + 22933 (Sep. 2016 ) = $56,014 Mil.

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

Exxon Mobil Corp'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
=22,933 / 58677
=39.08 %

* 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

Exxon Mobil Corp had a gross margin of 39.08% for the quarter that ended in Sep. 2016 => Competition eroding margins


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.

Exxon Mobil Corp Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
Gross_Profit 164,380173,169190,000124,753120,923146,124146,216122,985115,76680,614

Exxon Mobil Corp Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
Gross_Profit 30,64929,59224,57020,66021,60126,45440415,62417,05322,933
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