Switch to:
Danaher Corp (NYSE:DHR)
Gross Profit
$11,662 Mil (TTM As of Jun. 2016)

Danaher Corp's gross profit for the three months ended in Jun. 2016 was $3,149 Mil. Danaher Corp's gross profit for the trailing twelve months (TTM) ended in Jun. 2016 was $11,662 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Danaher Corp's gross profit for the three months ended in Jun. 2016 was $3,149 Mil. Danaher Corp's revenue for the three months ended in Jun. 2016 was $5,785 Mil. Therefore, Danaher Corp's Gross Margin for the quarter that ended in Jun. 2016 was 54.44%.

Danaher Corp had a gross margin of 54.44% for the quarter that ended in Jun. 2016 => Durable competitive advantage

During the past 13 years, the highest Gross Margin of Danaher Corp was 52.82%. The lowest was 44.34%. And the median was 50.93%.


Definition

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

Danaher Corp's Gross Profit for the fiscal year that ended in Dec. 2015 is calculated as

Gross Profit (A: Dec. 2015 )=Revenue - Cost of Goods Sold
=20563.1 - 9800.6
=10,763

Danaher Corp's Gross Profit for the quarter that ended in Jun. 2016 is calculated as

Gross Profit (Q: Jun. 2016 )=Revenue - Cost of Goods Sold
=5785 - 2635.6
=3,149

Danaher Corp Gross Profit for the trailing twelve months (TTM) ended in Jun. 2016 was 2637 (Sep. 2015 ) + 3013.3 (Dec. 2015 ) + 2862.6 (Mar. 2016 ) + 3149.4 (Jun. 2016 ) = $11,662 Mil.

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

Danaher Corp's Gross Margin for the quarter that ended in Jun. 2016 is calculated as

Gross Margin (Q: Jun. 2016 )=Gross Profit (Q: Jun. 2016 ) / Revenue (Q: Jun. 2016 )
=(Revenue - Cost of Goods Sold) / Revenue
=3,149 / 5785
=54.44 %

* All numbers are in millions except for per share data and ratio. All numbers are in their own 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

Danaher Corp had a gross margin of 54.44% for the quarter that ended in Jun. 2016 => Durable competitive advantage


Related Terms

Cost of Goods Sold, Gross Margin, Revenue


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Danaher Corp Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
Gross_Profit 4,1975,0415,9405,2806,4058,1779,4149,3429,89310,763

Danaher Corp Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
Gross_Profit 2,4532,6202,4522,6622,4682,6442,6373,0132,8633,149
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK