What does gross margin mean?

Gross profit (revenue minus cost of revenue) as a percentage of revenue, on a trailing-twelve-month basis. Measures how much of each sales dollar survives the direct cost of producing the goods or services sold.

Weatherford International WFRD Gross margin

Discontinued — last reported Q3 '18

Gross margin at other companies

NOVA, Inc.NOV

19.5%-3.1pp

SM EnergySM

71.3%-4.4pp

Zurn Elkay Water SolutionsZWS

45.4%0.0pp

XylemXYL

38.6%+1.1pp

ITTITT

35.5%+0.5pp

EMCOR GroupEME

19.3%0.0pp

Other financials

Income statement

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Revenue$1.2B-3.4%

Operating income$123.0M-13.4%

Net income$108.0M+42.1%

EPS (diluted)$1.49+44.7%

Balance sheet

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Cash & equivalents$1.1B+12.9%

Total debt$1.7B-6.2%

Total equity$1.8B+30.0%

Total assets$5.1B+0.6%

Cash flow

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Operating cash flow$136.0M-4.2%

CapEx$54.0M-29.9%

Free cash flow$82.0M+26.2%

Valuation

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Market cap$6.59B+73.9%

Enterprise value$7.24B+55.4%

P/E14.2×+6.2×

P/S1.4×+0.6×

Profitability

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Operating margin15.1%-0.7pp

Net margin9.5%+0.7pp

FCF margin9.6%+0.5pp

Returns & leverage

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Return on equity29.8%-8.7pp

Debt / equity1×-0.4×

Current ratio2.3×+0.2×

Where this comes from

Calculated from Weatherford International’s reported figures.

gross profit/total revenue=53.2%

Based on trailing twelve months.

The official record: Weatherford International’s 10-Q, filed October 30, 2019, on SEC EDGAR. View the filing →

Questions, answered.

What does gross margin mean?: Gross profit (revenue minus cost of revenue) as a percentage of revenue, on a trailing-twelve-month basis. Measures how much of each sales dollar survives the direct cost of producing the goods or services sold.