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Monro Muffler Brake Inc (NAS:MNRO)
Gross Profit
$353.3 Mil (TTM As of Mar. 2015)

Monro Muffler Brake Inc's gross profit for the three months ended in Mar. 2015 was $83.7 Mil. Monro Muffler Brake Inc's gross profit for the trailing twelve months (TTM) ended in Mar. 2015 was $353.3 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Monro Muffler Brake Inc's gross profit for the three months ended in Mar. 2015 was $83.7 Mil. Monro Muffler Brake Inc's revenue for the three months ended in Mar. 2015 was $219.1 Mil. Therefore, Monro Muffler Brake Inc's Gross Margin for the quarter that ended in Mar. 2015 was 38.18%.

Monro Muffler Brake Inc had a gross margin of 38.18% for the quarter that ended in Mar. 2015 => Competition eroding margins

During the past 13 years, the highest Gross Margin of Monro Muffler Brake Inc was 49.93%. The lowest was 38.00%. And the median was 40.50%.

Warning Sign:

Monro Muffler Brake Inc gross margin has been in long term decline. The average rate of decline per year is -1.1%.


Definition

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

Monro Muffler Brake Inc's Gross Profit for the fiscal year that ended in Mar. 2015 is calculated as

Gross Profit (A: Mar. 2015 )=Revenue - Cost of Goods Sold
=894.492 - 541.142
=353.4

Monro Muffler Brake 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
=219.134 - 135.475
=83.7

Monro Muffler Brake Inc Gross Profit for the trailing twelve months (TTM) ended in Mar. 2015 was 90.022 (Jun. 2014 ) + 89.472 (Sep. 2014 ) + 90.196 (Dec. 2014 ) + 83.659 (Mar. 2015 ) = $353.3 Mil.

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

Monro Muffler Brake 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
=83.7 / 219.134
=38.18 %

* 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

Monro Muffler Brake Inc had a gross margin of 38.18% for the quarter that ended in Mar. 2015 => 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.

Monro Muffler Brake Inc Annual Data

Mar06Mar07Mar08Mar09Mar10Mar11Mar12Mar13Mar14Mar15
Gross_Profit 147.8166.4174.6191.5231.2257.5276.4278.1320.0353.4

Monro Muffler Brake Inc Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
Gross_Profit 69.670.678.981.782.377.090.089.590.283.7
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