Deere's gross profit for the
three
months ended in Jan. 2024 was $4,646 Mil. Deere's gross profit for the trailing twelve months (TTM) ended in Jan. 2024 was $22,490 Mil.
Gross Margin % is calculated as gross profit divided by its revenue. Deere's gross profit for the
three
months ended in Jan. 2024 was $4,646 Mil. Deere's Revenue for the
three
months ended in Jan. 2024 was $11,846 Mil. Therefore, Deere's Gross Margin % for the quarter that ended in Jan. 2024 was 39.22%.
Deere had a gross margin of 39.22% for the quarter that ended in Jan. 2024 => Competition eroding margins
During the past 13 years, the highestGross Margin % of Deere was 37.67%. The lowest was 27.89%. And the median was 29.80%.
Deere Gross Profit Historical Data
The historical data trend for Deere's Gross Profit can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Farm & Heavy Construction Machinery subindustry, Deere's Gross Profit, along with its competitors' market caps and Gross Profit data, can be viewed below:
* 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. Note that "N/A" values will not show up in the chart.
Deere's Gross Profit Distribution in the Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, Deere's Gross Profit distribution charts can be found below:
* The bar in red indicates where Deere's Gross Profit falls into.
Deere Gross Profit Calculation
Gross Profit is the different between the sale prices and the cost of buying or producing the goods.
Deere's Gross Profit for the fiscal year that ended in Oct. 2023 is calculated as
Gross Profit for the trailing twelve months (TTM) ended in Jan. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $22,490 Mil.
Gross Profit is the numerator in the calculation of Gross Margin.
Deere's Gross Margin % for the quarter that ended in Jan. 2024 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange 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.
Deere (NYSE:DE) Gross Profit 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
Deere had a gross margin of 39.22% for the quarter that ended in Jan. 2024 => Competition eroding margins
Deere Gross Profit Related Terms
Thank you for viewing the detailed overview of Deere's Gross Profit provided by GuruFocus.com. Please click on the following links to see related term pages.
Deere is the world's leading manufacturer of agricultural equipment, producing some of the most recognizable machines in the heavy machinery industry. The company is divided into four reportable segments: production and precision agriculture, small agriculture and turf, construction and forestry, and John Deere Capital. Its products are available through an extensive dealer network, which includes over 2,000 dealer locations in North America and approximately 3,700 locations globally. John Deere Capital provides retail financing for machinery to its customers, in addition to wholesale financing for dealers, which increases the likelihood of Deere product sales.
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