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Dover Corp (NYSE:DOV)
Gross Profit
$2,678 Mil (TTM As of Sep. 2015)

Dover Corp's gross profit for the three months ended in Sep. 2015 was $673 Mil. Dover Corp's gross profit for the trailing twelve months (TTM) ended in Sep. 2015 was $2,678 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Dover Corp's gross profit for the three months ended in Sep. 2015 was $673 Mil. Dover Corp's revenue for the three months ended in Sep. 2015 was $1,788 Mil. Therefore, Dover Corp's Gross Margin for the quarter that ended in Sep. 2015 was 37.63%.

Dover Corp had a gross margin of 37.63% for the quarter that ended in Sep. 2015 => Competition eroding margins

During the past 13 years, the highest Gross Margin of Dover Corp was 39.65%. The lowest was 35.67%. And the median was 37.41%.


Definition

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

Dover Corp's Gross Profit for the fiscal year that ended in Dec. 2014 is calculated as

Gross Profit (A: Dec. 2014 )=Revenue - Cost of Goods Sold
=7752.728 - 4778.479
=2,974

Dover Corp's Gross Profit for the quarter that ended in Sep. 2015 is calculated as

Gross Profit (Q: Sep. 2015 )=Revenue - Cost of Goods Sold
=1787.582 - 1114.974
=673

Dover Corp Gross Profit for the trailing twelve months (TTM) ended in Sep. 2015 was 723.868 (Dec. 2014 ) + 627.159 (Mar. 2015 ) + 654.568 (Jun. 2015 ) + 672.608 (Sep. 2015 ) = $2,678 Mil.

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

Dover Corp's Gross Margin for the quarter that ended in Sep. 2015 is calculated as

Gross Margin (Q: Sep. 2015 )=Gross Profit (Q: Sep. 2015 ) / Revenue (Q: Sep. 2015 )
=(Revenue - Cost of Goods Sold) / Revenue
=673 / 1787.582
=37.63 %

* 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

Dover Corp had a gross margin of 37.63% for the quarter that ended in Sep. 2015 => Competition eroding margins


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.

Dover Corp Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
Gross_Profit 2,3092,6222,7302,0992,4232,8453,1072,7792,9742,568

Dover Corp Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
Gross_Profit 756585708768774724627655673614
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