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Mettler-Toledo International Inc (NYSE:MTD)
Gross Profit
\$1,408 Mil (TTM As of Sep. 2016)

Mettler-Toledo International Inc's gross profit for the three months ended in Sep. 2016 was \$369 Mil. Mettler-Toledo International Inc's gross profit for the trailing twelve months (TTM) ended in Sep. 2016 was \$1,408 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Mettler-Toledo International Inc's gross profit for the three months ended in Sep. 2016 was \$369 Mil. Mettler-Toledo International Inc's revenue for the three months ended in Sep. 2016 was \$651 Mil. Therefore, Mettler-Toledo International Inc's Gross Margin for the quarter that ended in Sep. 2016 was 56.79%.

Mettler-Toledo International Inc had a gross margin of 56.79% for the quarter that ended in Sep. 2016 => Durable competitive advantage

During the past 13 years, the highest Gross Margin of Mettler-Toledo International Inc was 56.94%. The lowest was 49.56%. And the median was 52.73%.

Definition

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

Mettler-Toledo International Inc'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 = 2395.447 - 1043.454 = 1,352

Mettler-Toledo International Inc's Gross Profit for the quarter that ended in Sep. 2016 is calculated as

 Gross Profit (Q: Sep. 2016 ) = Revenue - Cost of Goods Sold = 650.598 - 281.104 = 369

Mettler-Toledo International Inc Gross Profit for the trailing twelve months (TTM) ended in Sep. 2016 was 390.747 (Dec. 2015 ) + 299.907 (Mar. 2016 ) + 347.576 (Jun. 2016 ) + 369.494 (Sep. 2016 ) = \$1,408 Mil.

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

Mettler-Toledo International Inc's Gross Margin for the quarter that ended in Sep. 2016 is calculated as

 Gross Margin (Q: Sep. 2016 ) = Gross Profit (Q: Sep. 2016 ) / Revenue (Q: Sep. 2016 ) = (Revenue - Cost of Goods Sold) / Revenue = 369 / 650.598 = 56.79 %

* 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

Mettler-Toledo International Inc had a gross margin of 56.79% for the quarter that ended in Sep. 2016 => Durable competitive advantage

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.

Mettler-Toledo International Inc Annual Data

 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Gross_Profit 790 896 993 889 1,037 1,218 1,241 1,282 1,359 1,352

Mettler-Toledo International Inc Quarterly Data

 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Gross_Profit 328 344 394 299 323 340 391 300 348 369
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