Switch to:
Schweitzer-Mauduit International Inc (NYSE:SWM)
Gross Profit
$259.3 Mil (TTM As of Sep. 2016)

Schweitzer-Mauduit International Inc's gross profit for the three months ended in Sep. 2016 was $63.1 Mil. Schweitzer-Mauduit International Inc's gross profit for the trailing twelve months (TTM) ended in Sep. 2016 was $259.3 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Schweitzer-Mauduit International Inc's gross profit for the three months ended in Sep. 2016 was $63.1 Mil. Schweitzer-Mauduit International Inc's revenue for the three months ended in Sep. 2016 was $209.3 Mil. Therefore, Schweitzer-Mauduit International Inc's Gross Margin for the quarter that ended in Sep. 2016 was 30.15%.

Schweitzer-Mauduit International Inc had a gross margin of 30.15% for the quarter that ended in Sep. 2016 => Competition eroding margins

During the past 13 years, the highest Gross Margin of Schweitzer-Mauduit International Inc was 33.33%. The lowest was 12.84%. And the median was 27.20%.


Definition

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

Schweitzer-Mauduit 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
=764.1 - 539.7
=224.4

Schweitzer-Mauduit 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
=209.3 - 146.2
=63.1

Schweitzer-Mauduit International Inc Gross Profit for the trailing twelve months (TTM) ended in Sep. 2016 was 65.8 (Dec. 2015 ) + 63.5 (Mar. 2016 ) + 66.9 (Jun. 2016 ) + 63.1 (Sep. 2016 ) = $259.3 Mil.

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

Schweitzer-Mauduit 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
=63.1 / 209.3
=30.15 %

* 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

Schweitzer-Mauduit International Inc had a gross margin of 30.15% for the quarter that ended in Sep. 2016 => 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 local exchange's currency.

Schweitzer-Mauduit International Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
Gross_Profit 84.1108.1103.2187.8195.2243.0259.5252.7218.8224.4

Schweitzer-Mauduit International Inc Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
Gross_Profit 59.252.949.151.454.852.465.863.566.963.1
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)
FEEDBACK