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Marcus & Millichap Inc (NYSE:MMI)
Gross Profit
\$272.7 Mil (TTM As of Dec. 2016)

Marcus & Millichap Inc's gross profit for the three months ended in Dec. 2016 was \$67.5 Mil. Marcus & Millichap Inc's gross profit for the trailing twelve months (TTM) ended in Dec. 2016 was \$272.7 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Marcus & Millichap Inc's gross profit for the three months ended in Dec. 2016 was \$67.5 Mil. Marcus & Millichap Inc's revenue for the three months ended in Dec. 2016 was \$189.2 Mil. Therefore, Marcus & Millichap Inc's Gross Margin for the quarter that ended in Dec. 2016 was 35.70%.

Marcus & Millichap Inc had a gross margin of 35.70% for the quarter that ended in Dec. 2016 => Competition eroding margins

During the past 7 years, the highest Gross Margin of Marcus & Millichap Inc was 42.98%. The lowest was 38.01%. And the median was 39.29%.

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. 2016 is calculated as

 Gross Profit (A: Dec. 2016 ) = Revenue - Cost of Goods Sold = 717.45 - 444.768 = 272.7

Marcus & Millichap Inc's Gross Profit for the quarter that ended in Dec. 2016 is calculated as

 Gross Profit (Q: Dec. 2016 ) = Revenue - Cost of Goods Sold = 189.157 - 121.637 = 67.5

Marcus & Millichap Inc Gross Profit for the trailing twelve months (TTM) ended in Dec. 2016 was 68.119 (Mar. 2016 ) + 70.261 (Jun. 2016 ) + 66.782 (Sep. 2016 ) + 67.52 (Dec. 2016 ) = \$272.7 Mil.

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

Marcus & Millichap Inc's Gross Margin for the quarter that ended in Dec. 2016 is calculated as

 Gross Margin (Q: Dec. 2016 ) = Gross Profit (Q: Dec. 2016 ) / Revenue (Q: Dec. 2016 ) = (Revenue - Cost of Goods Sold) / Revenue = 67.5 / 189.157 = 35.70 %

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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 35.70% for the quarter that ended in Dec. 2016 => Competition eroding margins

Related Terms

Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Marcus & Millichap Inc Annual Data

 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Gross_Profit 0.0 0.0 0.0 93.7 112.2 155.5 171.3 222.1 265.7 272.7

Marcus & Millichap Inc Quarterly Data

 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Gross_Profit 58.6 62.6 60.4 67.9 63.9 73.5 68.1 70.3 66.8 67.5
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