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M/A-COM Technology Solutions Holdings Inc (NAS:MTSI)
Gross Profit
$144.1 Mil (TTM As of Dec. 2013)

M/A-COM Technology Solutions Holdings Inc's gross profit for the three months ended in Dec. 2013 was $36.7 Mil. M/A-COM Technology Solutions Holdings Inc's gross profit for the trailing twelve months (TTM) ended in Dec. 2013 was $144.1 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 Dec. 2013 was $36.7 Mil. M/A-COM Technology Solutions Holdings Inc's revenue for the three months ended in Dec. 2013 was $83.5 Mil. Therefore, M/A-COM Technology Solutions Holdings Inc's Gross Margin for the quarter that ended in Dec. 2013 was 43.93%.

M/A-COM Technology Solutions Holdings Inc had a gross margin of 43.93% for the quarter that ended in Dec. 2013 => Durable competitive advantage

During the past 5 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 42.50%.


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. 2013 is calculated as

Gross Profit (A: Sep. 2013 )=Revenue - Cost of Goods Sold
=318.718 - 179.019
=139.7

M/A-COM Technology Solutions Holdings Inc's Gross Profit for the quarter that ended in Dec. 2013 is calculated as

Gross Profit (Q: Dec. 2013 )=Revenue - Cost of Goods Sold
=83.468 - 46.803
=36.7

M/A-COM Technology Solutions Holdings Inc Gross Profit for the trailing twelve months (TTM) ended in Dec. 2013 was 33.861 (Mar. 2013 ) + 36.293 (Jun. 2013 ) + 37.28 (Sep. 2013 ) + 36.665 (Dec. 2013 ) = $144.1 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 Dec. 2013 is calculated as

Gross Margin (Q: Dec. 2013 )=Gross Profit (Q: Dec. 2013 ) / Revenue (Q: Dec. 2013 )
=(Revenue - Cost of Goods Sold) / Revenue
=36.7 / 83.468
=43.93 %

* 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 43.93% for the quarter that ended in Dec. 2013 => 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

Sep09Sep10Sep11Sep12Sep13
Gross_Profit 0.00.00.00.00.025.593.7131.9134.9139.7

M/A-COM Technology Solutions Holdings Inc Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
Gross_Profit 34.931.436.535.431.532.333.936.337.336.7
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