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Blyth Inc (NYSE:BTH)
Gross Profit
$499.1 Mil (TTM As of Jun. 2014)

Blyth Inc's gross profit for the three months ended in Jun. 2014 was $101.3 Mil. Blyth Inc's gross profit for the trailing twelve months (TTM) ended in Jun. 2014 was $499.1 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Blyth Inc's gross profit for the three months ended in Jun. 2014 was $101.3 Mil. Blyth Inc's revenue for the three months ended in Jun. 2014 was $157.8 Mil. Therefore, Blyth Inc's Gross Margin for the quarter that ended in Jun. 2014 was 64.22%.

Blyth Inc had a gross margin of 64.22% for the quarter that ended in Jun. 2014 => Durable competitive advantage

During the past 13 years, the highest Gross Margin of Blyth Inc was 66.77%. The lowest was 45.34%. And the median was 54.85%.


Definition

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

Blyth Inc's Gross Profit for the fiscal year that ended in Dec. 2013 is calculated as

Gross Profit (A: Dec. 2013 )=Revenue - Cost of Goods Sold
=885.45 - 312.859
=572.6

Blyth Inc's Gross Profit for the quarter that ended in Jun. 2014 is calculated as

Gross Profit (Q: Jun. 2014 )=Revenue - Cost of Goods Sold
=157.793 - 56.464
=101.3

Blyth Inc Gross Profit for the trailing twelve months (TTM) ended in Jun. 2014 was 112.531 (Sep. 2013 ) + 171.776 (Dec. 2013 ) + 113.48 (Mar. 2014 ) + 101.329 (Jun. 2014 ) = $499.1 Mil.

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

Blyth Inc's Gross Margin for the quarter that ended in Jun. 2014 is calculated as

Gross Margin (Q: Jun. 2014 )=Gross Profit (Q: Jun. 2014 ) / Revenue (Q: Jun. 2014 )
=(Revenue - Cost of Goods Sold) / Revenue
=101.3 / 157.793
=64.22 %

* 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

Blyth Inc had a gross margin of 64.22% for the quarter that ended in Jun. 2014 => 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.

Blyth Inc Annual Data

Jan04Jan05Jan06Jan07Jan08Jan09Jan10Jan11Dec12Dec13
Gross_Profit 723.7771.7713.3596.7615.5577.2525.5499.6787.5572.6

Blyth Inc Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
Gross_Profit 183.9210.9176.7222.3153.1135.2112.5171.8113.5101.3
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