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C.H. Robinson Worldwide Inc (NAS:CHRW)
Gross Margin
16.64% (As of Sep. 2016)

Gross Margin is calculated as gross profit divided by its revenue. C.H. Robinson Worldwide Inc's gross profit for the three months ended in Sep. 2016 was $558 Mil. C.H. Robinson Worldwide Inc's revenue for the three months ended in Sep. 2016 was $3,356 Mil. Therefore, C.H. Robinson Worldwide Inc's Gross Margin for the quarter that ended in Sep. 2016 was 16.64%.

CHRW' s Gross Margin Range Over the Past 10 Years
Min: 14.4   Max: 18.24
Current: 17.67

14.4
18.24

During the past 13 years, the highest Gross Margin of C.H. Robinson Worldwide Inc was 18.24%. The lowest was 14.40%. And the median was 15.93%.

CHRW's Gross Margin is ranked lower than
68% of the 831 Companies
in the Global Integrated Shipping & Logistics industry.

( Industry Median: 29.45 vs. CHRW: 17.67 )

C.H. Robinson Worldwide Inc had a gross margin of 16.64% for the quarter that ended in Sep. 2016 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for C.H. Robinson Worldwide Inc was 0.20% per year.


Definition

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

C.H. Robinson Worldwide Inc's Gross Margin for the fiscal year that ended in Dec. 2015 is calculated as

Gross Margin (A: Dec. 2015 )=Gross Profit (A: Dec. 2015 ) / Revenue (A: Dec. 2015 )
=2268.5 / 13476.084
=(Revenue - Cost of Goods Sold) / Revenue
=(13476.084 - 11207.604) / 13476.084
=16.83 %

C.H. Robinson Worldwide Inc'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 )
=558.5 / 3355.754
=(Revenue - Cost of Goods Sold) / Revenue
=(3355.754 - 2797.292) / 3355.754
=16.64 %

* 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

C.H. Robinson Worldwide Inc had a gross margin of 16.64% for the quarter that ended in Sep. 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 local exchange's currency.

C.H. Robinson Worldwide Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
Gross Margin 16.5117.0016.0318.2415.8315.8015.1214.4014.9016.83

C.H. Robinson Worldwide Inc Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
Gross Margin 14.8715.2214.9515.9116.4717.2117.7818.3318.0116.64
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