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LyondellBasell Industries NV  (NYSE:LYB) Gross Profit: $6,934 Mil (TTM As of Sep. 2018)

LyondellBasell Industries NV's gross profit for the three months ended in Sep. 2018 was $1,656 Mil. LyondellBasell Industries NV's gross profit for the trailing twelve months (TTM) ended in Sep. 2018 was $6,934 Mil.

Gross Margin % is calculated as gross profit divided by its revenue. LyondellBasell Industries NV's gross profit for the three months ended in Sep. 2018 was $1,656 Mil. LyondellBasell Industries NV's Revenue for the three months ended in Sep. 2018 was $10,155 Mil. Therefore, LyondellBasell Industries NV's Gross Margin % for the quarter that ended in Sep. 2018 was 16.31%.

LyondellBasell Industries NV had a gross margin of 16.31% for the quarter that ended in Sep. 2018 => No sustainable competitive advantage

During the past 11 years, the highest Gross Margin % of LyondellBasell Industries NV was 21.54%. The lowest was 3.80%. And the median was 13.29%.


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.

LyondellBasell Industries NV Annual Data

Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17
Gross Profit Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6,122.00 6,669.00 7,052.00 5,992.00 6,425.00

LyondellBasell Industries NV Quarterly Data

Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18
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 1,577.00 1,607.00 1,755.00 1,916.00 1,656.00

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.


LyondellBasell Industries NV Distribution

* The bar in red indicates where LyondellBasell Industries NV's Gross Profit falls into.



Calculation

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

LyondellBasell Industries NV's Gross Profit for the fiscal year that ended in Dec. 2017 is calculated as

Gross Profit (A: Dec. 2017 )=Revenue - Cost of Goods Sold
=34484 - 28059
=6,425

LyondellBasell Industries NV's Gross Profit for the quarter that ended in Sep. 2018 is calculated as

Gross Profit (Q: Sep. 2018 )=Revenue - Cost of Goods Sold
=10155 - 8499
=1,656

Gross Profit for the trailing twelve months (TTM) ended in Sep. 2018 was 1607 (Dec. 2017 ) + 1755 (Mar. 2018 ) + 1916 (Jun. 2018 ) + 1656 (Sep. 2018 ) = $6,934 Mil.

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

LyondellBasell Industries NV's Gross Margin % for the quarter that ended in Sep. 2018 is calculated as

Gross Margin % (Q: Sep. 2018 )=Gross Profit (Q: Sep. 2018 ) / Revenue (Q: Sep. 2018 )
=(Revenue - Cost of Goods Sold) / Revenue
=1,656 / 10155
=16.31 %

* 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.


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

LyondellBasell Industries NV had a gross margin of 16.31% for the quarter that ended in Sep. 2018 => No sustainable competitive advantage


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