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Schweitzer-Mauduit International, Inc. (NYSE:SWM)
Gross Profit
$231.6 Mil (TTM As of Sep. 2014)

Schweitzer-Mauduit International, Inc.'s gross profit for the three months ended in Sep. 2014 was $52.9 Mil. Schweitzer-Mauduit International, Inc.'s gross profit for the trailing twelve months (TTM) ended in Sep. 2014 was $231.6 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 Sep. 2014 was $52.9 Mil. Schweitzer-Mauduit International, Inc.'s revenue for the three months ended in Sep. 2014 was $204.3 Mil. Therefore, Schweitzer-Mauduit International, Inc.'s Gross Margin for the quarter that ended in Sep. 2014 was 25.89%.

Schweitzer-Mauduit International, Inc. had a gross margin of 25.89% for the quarter that ended in Sep. 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 23.94%.


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. 2013 is calculated as

Gross Profit (A: Dec. 2013 )=Revenue - Cost of Goods Sold
=772.8 - 520.1
=252.7

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

Gross Profit (Q: Sep. 2014 )=Revenue - Cost of Goods Sold
=204.3 - 151.4
=52.9

Schweitzer-Mauduit International, Inc. Gross Profit for the trailing twelve months (TTM) ended in Sep. 2014 was 61.9 (Dec. 2013 ) + 57.6 (Mar. 2014 ) + 59.2 (Jun. 2014 ) + 52.9 (Sep. 2014 ) = $231.6 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 Sep. 2014 is calculated as

Gross Margin (Q: Sep. 2014 )=Gross Profit (Q: Sep. 2014 ) / Revenue (Q: Sep. 2014 )
=(Revenue - Cost of Goods Sold) / Revenue
=52.9 / 204.3
=25.89 %

* 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 25.89% for the quarter that ended in Sep. 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

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Gross_Profit 122.197.384.1108.1103.2187.8196.6238.9259.5252.7

Schweitzer-Mauduit International, Inc. Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
Gross_Profit 63.666.365.362.764.963.261.957.659.252.9
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