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Schweitzer-Mauduit International, Inc. (NYSE:SWM)
Gross Profit
$208.2 Mil (TTM As of Jun. 2015)

Schweitzer-Mauduit International, Inc.'s gross profit for the three months ended in Jun. 2015 was $54.8 Mil. Schweitzer-Mauduit International, Inc.'s gross profit for the trailing twelve months (TTM) ended in Jun. 2015 was $208.2 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 Jun. 2015 was $54.8 Mil. Schweitzer-Mauduit International, Inc.'s revenue for the three months ended in Jun. 2015 was $181.9 Mil. Therefore, Schweitzer-Mauduit International, Inc.'s Gross Margin for the quarter that ended in Jun. 2015 was 30.13%.

Schweitzer-Mauduit International, Inc. had a gross margin of 30.13% for the quarter that ended in Jun. 2015 => Competition eroding margins

During the past 13 years, the highest Gross Margin of Schweitzer-Mauduit International, Inc. was 32.70%. The lowest was 12.84%. And the median was 24.21%.


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 Jun. 2015 is calculated as

Gross Profit (Q: Jun. 2015 )=Revenue - Cost of Goods Sold
=181.9 - 127.1
=54.8

Schweitzer-Mauduit International, Inc. Gross Profit for the trailing twelve months (TTM) ended in Jun. 2015 was 52.9 (Sep. 2014 ) + 49.1 (Dec. 2014 ) + 51.4 (Mar. 2015 ) + 54.8 (Jun. 2015 ) = $208.2 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 Jun. 2015 is calculated as

Gross Margin (Q: Jun. 2015 )=Gross Profit (Q: Jun. 2015 ) / Revenue (Q: Jun. 2015 )
=(Revenue - Cost of Goods Sold) / Revenue
=54.8 / 181.9
=30.13 %

* 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 30.13% for the quarter that ended in Jun. 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.

Schweitzer-Mauduit International, Inc. Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
Gross_Profit 97.384.1108.1103.2181.2196.6240.5250.9252.7218.8

Schweitzer-Mauduit International, Inc. Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
Gross_Profit 62.764.963.261.957.659.252.949.151.454.8
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