Market Cap : 1.71 B | Enterprise Value : 2.11 B | P/E (TTM) : 25.63 | P/B : 2.50 |
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ICF International's gross profit for the three months ended in Sep. 2019 was $136 Mil. ICF International's gross profit for the trailing twelve months (TTM) ended in Sep. 2019 was $522 Mil.
Gross Margin % is calculated as gross profit divided by its revenue. ICF International's gross profit for the three months ended in Sep. 2019 was $136 Mil. ICF International's Revenue for the three months ended in Sep. 2019 was $374 Mil. Therefore, ICF International's Gross Margin % for the quarter that ended in Sep. 2019 was 36.31%.
ICF International had a gross margin of 36.31% for the quarter that ended in Sep. 2019 => Competition eroding margins
During the past 13 years, the highest Gross Margin % of ICF International was 39.01%. The lowest was 35.73%. And the median was 37.71%.
* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.
* The bar in red indicates where ICF International's Gross Profit falls into.
Gross Profit is the different between the sale prices and the cost of buying or producing the goods.
ICF International's Gross Profit for the fiscal year that ended in Dec. 2018 is calculated as
Gross Profit (A: Dec. 2018 ) | = | Revenue | - | Cost of Goods Sold |
= | 1337.973 | - | 857.508 | |
= | 480 |
ICF International's Gross Profit for the quarter that ended in Sep. 2019 is calculated as
Gross Profit (Q: Sep. 2019 ) | = | Revenue | - | Cost of Goods Sold |
= | 373.918 | - | 238.158 | |
= | 136 |
Gross Profit for the trailing twelve months (TTM) ended in Sep. 2019 was 128.853 (Dec. 2018 ) + 125.305 (Mar. 2019 ) + 131.664 (Jun. 2019 ) + 135.76 (Sep. 2019 ) = $522 Mil.
Gross Profit is the numerator in the calculation of Gross Margin:
ICF International's Gross Margin % for the quarter that ended in Sep. 2019 is calculated as
Gross Margin % (Q: Sep. 2019 ) | = | Gross Profit (Q: Sep. 2019 ) | / | Revenue (Q: Sep. 2019 ) |
= | (Revenue - Cost of Goods Sold) | / | Revenue | |
= | 136 | / | 373.918 | |
= | 36.31 % |
* 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.
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
ICF International had a gross margin of 36.31% for the quarter that ended in Sep. 2019 => Competition eroding margins
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