Switch to:
Marcus & Millichap, Inc. (NYSE:MMI)
Gross Profit
$214.3 Mil (TTM As of Sep. 2014)

Marcus & Millichap, Inc.'s gross profit for the three months ended in Sep. 2014 was $58.6 Mil. Marcus & Millichap, Inc.'s gross profit for the trailing twelve months (TTM) ended in Sep. 2014 was $214.3 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Marcus & Millichap, Inc.'s gross profit for the three months ended in Sep. 2014 was $58.6 Mil. Marcus & Millichap, Inc.'s revenue for the three months ended in Sep. 2014 was $150.9 Mil. Therefore, Marcus & Millichap, Inc.'s Gross Margin for the quarter that ended in Sep. 2014 was 38.85%.

Marcus & Millichap, Inc. had a gross margin of 38.85% for the quarter that ended in Sep. 2014 => Competition eroding margins

During the past 4 years, the highest Gross Margin of Marcus & Millichap, Inc. was 42.98%. The lowest was 39.29%. And the median was 40.58%.


Definition

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

Marcus & Millichap, Inc.'s Gross Profit for the fiscal year that ended in Dec. 2013 is calculated as

Gross Profit (A: Dec. 2013 )=Revenue - Cost of Goods Sold
=435.895 - 264.637
=171.3

Marcus & Millichap, Inc.'s Gross Profit for the quarter that ended in Sep. 2014 is calculated as

Gross Profit (Q: Sep. 2014 )=Revenue - Cost of Goods Sold
=150.889 - 92.269
=58.6

Marcus & Millichap, Inc. Gross Profit for the trailing twelve months (TTM) ended in Sep. 2014 was 54.859 (Dec. 2013 ) + 46.194 (Mar. 2014 ) + 54.664 (Jun. 2014 ) + 58.62 (Sep. 2014 ) = $214.3 Mil.

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

Marcus & Millichap, Inc.'s Gross Margin for the quarter that ended in Sep. 2014 is calculated as

Gross Margin (Q: Sep. 2014 )=Gross Profit (Q: Sep. 2014 ) / Revenue (Q: Sep. 2014 )
=(Revenue - Cost of Goods Sold) / Revenue
=58.6 / 150.889
=38.85 %

* 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

Marcus & Millichap, Inc. had a gross margin of 38.85% for the quarter that ended in Sep. 2014 => 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.

Marcus & Millichap, Inc. Annual Data

Dec10Dec11Dec12Dec13
Gross_Profit 0.00.00.00.00.00.093.7112.2155.5171.3

Marcus & Millichap, Inc. Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
Gross_Profit 0.037.056.328.144.044.254.946.254.758.6
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)
Free 7-day Trial
FEEDBACK