What does gross margin mean?

How much of every sales dollar is left after the direct cost of what was sold.

How do you interpret gross margin?

Higher and stable gross margins indicate pricing power and a durable cost structure. A declining trend signals input-cost pressure, pricing competition, or a shift toward lower-margin products.

How does gross margin compare across companies?

Highly comparable within an industry, less so across industries — software runs 70%+ while distributors run in single digits. Track the trend more than the absolute level across sectors.

C.H. Robinson Worldwide CHRW Gross margin

Discontinued — last reported Q1 '18

Gross margin at other companies

Uber TechnologiesUBER

41%+1.5pp

ROP

Roper Technologies, Inc.ROP

69.4%+0.5pp

Medline, Inc. MDLN

27.4%+1.5pp

Other financials

Income statement

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Revenue$4.0B-0.8%

Operating income$175.7M-0.7%

Net income$147.2M+8.8%

EPS (diluted)$1.22+9.9%

Balance sheet

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Cash & equivalents$159.7M+22.9%

Total debt$1.6B-4.9%

Total equity$1.7B-1.8%

Total assets$5.2B+0.2%

Cash flow

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Operating cash flow$68.6M-35.6%

CapEx$2.6M-21.3%

Free cash flow$66.0M-36.1%

Valuation

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Market cap$21.83B+61.7%

Enterprise value$23.31B+53.6%

P/E36.4×+9.9×

P/S1.4×+0.6×

Profitability

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Operating margin4.9%+0.8pp

Net margin3.7%+0.8pp

Returns & leverage

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Return on equity34.8%+2.7pp

Debt / equity1×0.0×

Current ratio1.6×+0.3×

Where this comes from

Calculated from C.H. Robinson Worldwide’s reported figures.

gross profit/total revenue=92.1%

Based on trailing twelve months.

The official record: C.H. Robinson Worldwide’s 10-Q, filed May 8, 2019, on SEC EDGAR. View the filing →

Questions, answered.

What does gross margin mean?: How much of every sales dollar is left after the direct cost of what was sold.
How do you interpret gross margin?: Higher and stable gross margins indicate pricing power and a durable cost structure. A declining trend signals input-cost pressure, pricing competition, or a shift toward lower-margin products.
How does gross margin compare across companies?: Highly comparable within an industry, less so across industries — software runs 70%+ while distributors run in single digits. Track the trend more than the absolute level across sectors.