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Dover Corp (NYSE:DOV)
Gross Profit
$2,865 Mil (TTM As of Mar. 2015)

Dover Corp's gross profit for the three months ended in Mar. 2015 was $627 Mil. Dover Corp's gross profit for the trailing twelve months (TTM) ended in Mar. 2015 was $2,865 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Dover Corp's gross profit for the three months ended in Mar. 2015 was $627 Mil. Dover Corp's revenue for the three months ended in Mar. 2015 was $1,716 Mil. Therefore, Dover Corp's Gross Margin for the quarter that ended in Mar. 2015 was 36.56%.

Dover Corp had a gross margin of 36.56% for the quarter that ended in Mar. 2015 => Competition eroding margins

During the past 13 years, the highest Gross Margin of Dover Corp was 40.40%. The lowest was 32.05%. And the median was 36.47%.


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 Mar. 2015 is calculated as

Gross Profit (Q: Mar. 2015 )=Revenue - Cost of Goods Sold
=1715.501 - 1088.342
=627

Dover Corp Gross Profit for the trailing twelve months (TTM) ended in Mar. 2015 was 796.417 (Jun. 2014 ) + 801.842 (Sep. 2014 ) + 639.781 (Dec. 2014 ) + 627.159 (Mar. 2015 ) = $2,865 Mil.

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

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

Gross Margin (Q: Mar. 2015 )=Gross Profit (Q: Mar. 2015 ) / Revenue (Q: Mar. 2015 )
=(Revenue - Cost of Goods Sold) / Revenue
=627 / 1715.501
=36.56 %

* 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 36.56% for the quarter that ended in Mar. 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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
Gross_Profit 1,8322,3092,6222,7302,0992,4232,8453,1072,7792,974

Dover Corp Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
Gross_Profit 774682756756585708796802640627
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