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M/A-COM Technology Solutions Holdings Inc (NAS:MTSI)
Gross Profit
$214.6 Mil (TTM As of Mar. 2015)

M/A-COM Technology Solutions Holdings Inc's gross profit for the three months ended in Mar. 2015 was $54.0 Mil. M/A-COM Technology Solutions Holdings Inc's gross profit for the trailing twelve months (TTM) ended in Mar. 2015 was $214.6 Mil.

Gross Margin is calculated as gross profit divided by its revenue. M/A-COM Technology Solutions Holdings Inc's gross profit for the three months ended in Mar. 2015 was $54.0 Mil. M/A-COM Technology Solutions Holdings Inc's revenue for the three months ended in Mar. 2015 was $124.9 Mil. Therefore, M/A-COM Technology Solutions Holdings Inc's Gross Margin for the quarter that ended in Mar. 2015 was 43.25%.

M/A-COM Technology Solutions Holdings Inc had a gross margin of 43.25% for the quarter that ended in Mar. 2015 => Durable competitive advantage

During the past 6 years, the highest Gross Margin of M/A-COM Technology Solutions Holdings Inc was 44.64%. The lowest was 24.87%. And the median was 41.29%.


Definition

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

M/A-COM Technology Solutions Holdings Inc's Gross Profit for the fiscal year that ended in Sep. 2014 is calculated as

Gross Profit (A: Sep. 2014 )=Revenue - Cost of Goods Sold
=418.662 - 249.674
=169.0

M/A-COM Technology Solutions Holdings Inc's Gross Profit for the quarter that ended in Mar. 2015 is calculated as

Gross Profit (Q: Mar. 2015 )=Revenue - Cost of Goods Sold
=124.885 - 70.878
=54.0

M/A-COM Technology Solutions Holdings Inc Gross Profit for the trailing twelve months (TTM) ended in Mar. 2015 was 50.214 (Jun. 2014 ) + 56.189 (Sep. 2014 ) + 54.201 (Dec. 2014 ) + 54.007 (Mar. 2015 ) = $214.6 Mil.

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

M/A-COM Technology Solutions Holdings Inc'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
=54.0 / 124.885
=43.25 %

* 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

M/A-COM Technology Solutions Holdings Inc had a gross margin of 43.25% for the quarter that ended in Mar. 2015 => Durable competitive advantage


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.

M/A-COM Technology Solutions Holdings Inc Annual Data

Sep09Sep10Sep11Sep12Sep13Sep14
Gross_Profit 0.00.00.00.025.593.7131.9134.9136.4169.0

M/A-COM Technology Solutions Holdings Inc Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
Gross_Profit 32.332.835.536.635.726.950.256.254.254.0
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