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BHP Billiton Ltd (NYSE:BHP)
Gross Margin
0.00% (As of Jun. 2016)

Gross Margin is calculated as gross profit divided by its revenue. BHP Billiton Ltd's gross profit for the six months ended in Jun. 2016 was $0 Mil. BHP Billiton Ltd's revenue for the six months ended in Jun. 2016 was $0 Mil. Therefore, BHP Billiton Ltd's Gross Margin for the quarter that ended in Jun. 2016 was 0.00%.

BHP' s Gross Margin Range Over the Past 10 Years
Min: 56.73   Max: 77.5
Current: 76.32

56.73
77.5

During the past 13 years, the highest Gross Margin of BHP Billiton Ltd was 77.50%. The lowest was 56.73%. And the median was 68.26%.

BHP's Gross Margin is ranked higher than
81% of the 765 Companies
in the Global Industrial Metals & Minerals industry.

( Industry Median: 21.82 vs. BHP: 76.32 )

BHP Billiton Ltd had a gross margin of % for the quarter that ended in Jun. 2016 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for BHP Billiton Ltd was 3.00% per year.


Definition

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

BHP Billiton Ltd's Gross Margin for the fiscal year that ended in Jun. 2016 is calculated as

Gross Margin (A: Jun. 2016 )=Gross Profit (A: Jun. 2016 ) / Revenue (A: Jun. 2016 )
=22261 / 30912
=(Revenue - Cost of Goods Sold) / Revenue
=(30912 - 8651) / 30912
=72.01 %

BHP Billiton Ltd's Gross Margin for the quarter that ended in Jun. 2016 is calculated as

Gross Margin (Q: Jun. 2016 )=Gross Profit (Q: Jun. 2016 ) / Revenue (Q: Jun. 2016 )
=0 / 0
=(Revenue - Cost of Goods Sold) / Revenue
=(0 - 0) / 0
= %

* 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

BHP Billiton Ltd had a gross margin of % for the quarter that ended in Jun. 2016 => No sustainable competitive advantage


Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin and Operating Margin closely helps avoid value trap situations.


Related Terms

Operating Margin, Cost of Goods Sold, Gross Profit, Revenue


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

BHP Billiton Ltd Annual Data

Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14Jun15Jun16
Gross Margin 72.9260.4156.7361.4367.6463.0768.8877.5077.1872.01

BHP Billiton Ltd Semi-Annual Data

Jun11Dec11Jun12Dec12Jun13Dec13Jun14Dec14Jun15Jun16
Gross Margin 38.21100.0023.24100.0023.10100.0044.01100.0048.500.00
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