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Clorox Co  (NYSE:CLX) Gross Profit: $2,671 Mil (TTM As of Jun. 2017)

Clorox Co's gross profit for the three months ended in Jun. 2017 was $752 Mil. Clorox Co's gross profit for the trailing twelve months (TTM) ended in Jun. 2017 was $2,671 Mil.

Gross Margin % is calculated as gross profit divided by its revenue. Clorox Co's gross profit for the three months ended in Jun. 2017 was $752 Mil. Clorox Co's Revenue for the three months ended in Jun. 2017 was $1,647 Mil. Therefore, Clorox Co's Gross Margin % for the quarter that ended in Jun. 2017 was 45.66%.

Clorox Co had a gross margin of 45.66% for the quarter that ended in Jun. 2017 => Durable competitive advantage

During the past 13 years, the highest Gross Margin % of Clorox Co was 45.10%. The lowest was 41.25%. And the median was 43.33%.


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

Clorox Co Annual Data

Jun08 Jun09 Jun10 Jun11 Jun12 Jun13 Jun14 Jun15 Jun16 Jun17
Gross Profit Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2,391.00 2,356.00 2,465.00 2,598.00 2,671.00

Clorox Co Quarterly Data

Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17
Gross Profit Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 727.00 640.00 629.00 650.00 752.00

Competitive Comparison
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap.


Calculation

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

Clorox Co's Gross Profit for the fiscal year that ended in Jun. 2017 is calculated as

Gross Profit (A: Jun. 2017 )=Revenue - Cost of Goods Sold
=5973 - 3302
=2,671

Clorox Co's Gross Profit for the quarter that ended in Jun. 2017 is calculated as

Gross Profit (Q: Jun. 2017 )=Revenue - Cost of Goods Sold
=1647 - 895
=752

Gross Profit for the trailing twelve months (TTM) ended in Jun. 2017 was 640 (Sep. 2016 ) + 629 (Dec. 2016 ) + 650 (Mar. 2017 ) + 752 (Jun. 2017 ) = $2,671 Mil.

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

Clorox Co's Gross Margin % for the quarter that ended in Jun. 2017 is calculated as

Gross Margin % (Q: Jun. 2017 )=Gross Profit (Q: Jun. 2017 ) / Revenue (Q: Jun. 2017 )
=(Revenue - Cost of Goods Sold) / Revenue
=752 / 1647
=45.66 %

* 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

Clorox Co had a gross margin of 45.66% for the quarter that ended in Jun. 2017 => Durable competitive advantage


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