Switch to:
Manitowoc Co Inc (NYSE:MTW)
Gross Profit
$598 Mil (TTM As of Jun. 2016)

Manitowoc Co Inc's gross profit for the three months ended in Jun. 2016 was $88 Mil. Manitowoc Co Inc's gross profit for the trailing twelve months (TTM) ended in Jun. 2016 was $598 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Manitowoc Co Inc's gross profit for the three months ended in Jun. 2016 was $88 Mil. Manitowoc Co Inc's revenue for the three months ended in Jun. 2016 was $458 Mil. Therefore, Manitowoc Co Inc's Gross Margin for the quarter that ended in Jun. 2016 was 19.27%.

Manitowoc Co Inc had a gross margin of 19.27% for the quarter that ended in Jun. 2016 => No sustainable competitive advantage

During the past 13 years, the highest Gross Margin of Manitowoc Co Inc was 25.24%. The lowest was 22.03%. And the median was 23.74%.


Definition

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

Manitowoc Co 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
=3435.8 - 2602.6
=833

Manitowoc Co Inc's Gross Profit for the quarter that ended in Jun. 2016 is calculated as

Gross Profit (Q: Jun. 2016 )=Revenue - Cost of Goods Sold
=457.7 - 369.5
=88

Manitowoc Co Inc Gross Profit for the trailing twelve months (TTM) ended in Jun. 2016 was 205.7 (Sep. 2015 ) + 222.5 (Dec. 2015 ) + 81.9 (Mar. 2016 ) + 88.2 (Jun. 2016 ) = $598 Mil.

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

Manitowoc Co Inc's Gross Margin for the quarter that ended in Jun. 2016 is calculated as

Gross Margin (Q: Jun. 2016 )=Gross Profit (Q: Jun. 2016 ) / Revenue (Q: Jun. 2016 )
=(Revenue - Cost of Goods Sold) / Revenue
=88 / 457.7
=19.27 %

* 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

Manitowoc Co Inc had a gross margin of 19.27% for the quarter that ended in Jun. 2016 => No sustainable 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.

Manitowoc Co Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
Gross_Profit 6118621,0167987598339431,022981833

Manitowoc Co Inc Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
Gross_Profit 22627124424075952062238288
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