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Schweitzer-Mauduit International, Inc. (NYSE:SWM)
Gross Profit
$218.8 Mil (TTM As of Dec. 2014)

Schweitzer-Mauduit International, Inc.'s gross profit for the three months ended in Dec. 2014 was $49.1 Mil. Schweitzer-Mauduit International, Inc.'s gross profit for the trailing twelve months (TTM) ended in Dec. 2014 was $218.8 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 Dec. 2014 was $49.1 Mil. Schweitzer-Mauduit International, Inc.'s revenue for the three months ended in Dec. 2014 was $181.7 Mil. Therefore, Schweitzer-Mauduit International, Inc.'s Gross Margin for the quarter that ended in Dec. 2014 was 27.02%.

Schweitzer-Mauduit International, Inc. had a gross margin of 27.02% for the quarter that ended in Dec. 2014 => Competition eroding margins

During the past 13 years, the highest Gross Margin of Schweitzer-Mauduit International, Inc. was 33.33%. The lowest was 12.84%. And the median was 24.35%.


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. 2014 is calculated as

Gross Profit (A: Dec. 2014 )=Revenue - Cost of Goods Sold
=794.3 - 575.5
=218.8

Schweitzer-Mauduit International, Inc.'s Gross Profit for the quarter that ended in Dec. 2014 is calculated as

Gross Profit (Q: Dec. 2014 )=Revenue - Cost of Goods Sold
=181.7 - 132.6
=49.1

Schweitzer-Mauduit International, Inc. Gross Profit for the trailing twelve months (TTM) ended in Dec. 2014 was 57.6 (Mar. 2014 ) + 59.2 (Jun. 2014 ) + 52.9 (Sep. 2014 ) + 49.1 (Dec. 2014 ) = $218.8 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 Dec. 2014 is calculated as

Gross Margin (Q: Dec. 2014 )=Gross Profit (Q: Dec. 2014 ) / Revenue (Q: Dec. 2014 )
=(Revenue - Cost of Goods Sold) / Revenue
=49.1 / 181.7
=27.02 %

* 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 27.02% for the quarter that ended in Dec. 2014 => 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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
Gross_Profit 97.384.1108.1103.2187.8196.6238.9259.5252.7218.8

Schweitzer-Mauduit International, Inc. Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
Gross_Profit 66.365.362.764.963.261.957.659.252.949.1
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