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Mettler-Toledo International Inc (NYSE:MTD)
Gross Profit
$1,295 Mil (TTM As of Mar. 2014)

Mettler-Toledo International Inc's gross profit for the three months ended in Mar. 2014 was $293 Mil. Mettler-Toledo International Inc's gross profit for the trailing twelve months (TTM) ended in Mar. 2014 was $1,295 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Mettler-Toledo International Inc's gross profit for the three months ended in Mar. 2014 was $293 Mil. Mettler-Toledo International Inc's revenue for the three months ended in Mar. 2014 was $551 Mil. Therefore, Mettler-Toledo International Inc's Gross Margin for the quarter that ended in Mar. 2014 was 53.15%.

Mettler-Toledo International Inc had a gross margin of 53.15% for the quarter that ended in Mar. 2014 => Durable competitive advantage

During the past 13 years, the highest Gross Margin of Mettler-Toledo International Inc was 53.89%. The lowest was 46.07%. And the median was 49.26%.


Definition

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

Mettler-Toledo International 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
=2378.972 - 1096.946
=1,282

Mettler-Toledo International Inc's Gross Profit for the quarter that ended in Mar. 2014 is calculated as

Gross Profit (Q: Mar. 2014 )=Revenue - Cost of Goods Sold
=550.621 - 257.98
=293

Mettler-Toledo International Inc Gross Profit for the trailing twelve months (TTM) ended in Mar. 2014 was 308.843 (Jun. 2013 ) + 318.573 (Sep. 2013 ) + 375.357 (Dec. 2013 ) + 292.641 (Mar. 2014 ) = $1,295 Mil.

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

Mettler-Toledo International Inc's Gross Margin for the quarter that ended in Mar. 2014 is calculated as

Gross Margin (Q: Mar. 2014 )=Gross Profit (Q: Mar. 2014 ) / Revenue (Q: Mar. 2014 )
=(Revenue - Cost of Goods Sold) / Revenue
=293 / 550.621
=53.15 %

* 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

Mettler-Toledo International Inc had a gross margin of 53.15% for the quarter that ended in Mar. 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.

Mettler-Toledo International Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Gross_Profit 6827307908969938891,0371,2181,2411,282

Mettler-Toledo International Inc Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
Gross_Profit 277299308357279309319375293328
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