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Schweitzer-Mauduit International Inc (NYSE:SWM)
Gross Profit
$236.5 Mil (TTM As of Mar. 2016)

Schweitzer-Mauduit International Inc's gross profit for the three months ended in Mar. 2016 was $63.5 Mil. Schweitzer-Mauduit International Inc's gross profit for the trailing twelve months (TTM) ended in Mar. 2016 was $236.5 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 Mar. 2016 was $63.5 Mil. Schweitzer-Mauduit International Inc's revenue for the three months ended in Mar. 2016 was $214.6 Mil. Therefore, Schweitzer-Mauduit International Inc's Gross Margin for the quarter that ended in Mar. 2016 was 29.59%.

Schweitzer-Mauduit International Inc had a gross margin of 29.59% for the quarter that ended in Mar. 2016 => Competition eroding margins

During the past 13 years, the highest Gross Margin of Schweitzer-Mauduit International Inc was 32.70%. The lowest was 12.84%. And the median was 27.06%.


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 Mar. 2016 is calculated as

Gross Profit (Q: Mar. 2016 )=Revenue - Cost of Goods Sold
=214.6 - 151.1
=63.5

Schweitzer-Mauduit International Inc Gross Profit for the trailing twelve months (TTM) ended in Mar. 2016 was 54.8 (Jun. 2015 ) + 52.4 (Sep. 2015 ) + 65.8 (Dec. 2015 ) + 63.5 (Mar. 2016 ) = $236.5 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 Mar. 2016 is calculated as

Gross Margin (Q: Mar. 2016 )=Gross Profit (Q: Mar. 2016 ) / Revenue (Q: Mar. 2016 )
=(Revenue - Cost of Goods Sold) / Revenue
=63.5 / 214.6
=29.59 %

* 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

Schweitzer-Mauduit International Inc had a gross margin of 29.59% for the quarter that ended in Mar. 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 own currency.

Schweitzer-Mauduit International Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
Gross_Profit 84.1108.1103.2181.2196.6240.5250.9252.7218.8224.4

Schweitzer-Mauduit International Inc Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
Gross_Profit 61.957.659.252.949.151.454.852.465.863.5
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