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Bank of Montreal (NYSE:BMO)
Gross Margin
0.00% (As of Jul. 2014)

Gross Margin is calculated as gross profit divided by its revenue. Bank of Montreal's gross profit for the three months ended in Jul. 2014 was $0 Mil. Bank of Montreal's revenue for the three months ended in Jul. 2014 was $3,856 Mil. Therefore, Bank of Montreal's Gross Margin for the quarter that ended in Jul. 2014 was 0.00%.

BMO' s 10-Year Gross Margin Range
Min: 0   Max: 0
Current: 0

BMO's Gross Marginis ranked lower than
100% of the Companies
in the Global Banks - Regional - Canada industry.

( Industry Median: vs. BMO: 0.00 )

Bank of Montreal had a gross margin of 100.00% for the quarter that ended in Jul. 2014 => Durable competitive advantage

The 3-Year average Growth Rate of Gross Margin for Bank of Montreal was 0.00% per year.


Definition

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Bank of Montreal's Gross Margin for the fiscal year that ended in Oct. 2013 is calculated as

Gross Margin (A: Oct. 2013 )=Gross Profit (A: Oct. 2013 ) / Revenue (A: Oct. 2013 )
=15503.3 / 15503.336511
=(Revenue - Cost of Goods Sold) / Revenue
=(15503.336511 - 0) / 15503.336511
=100.00 %

Bank of Montreal's Gross Margin for the quarter that ended in Jul. 2014 is calculated as

Gross Margin (Q: Jul. 2014 )=Gross Profit (Q: Jul. 2014 ) / Revenue (Q: Jul. 2014 )
=3856.4 / 3856.35864593
=(Revenue - Cost of Goods Sold) / Revenue
=(3856.35864593 - 0) / 3856.35864593
=100.00 %

* 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

Bank of Montreal had a gross margin of 100.00% for the quarter that ended in Jul. 2014 => Durable competitive advantage


Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin and Operating Margin closely helps avoid value trap situations.


Related Terms

Operating Margin, Cost of Goods Sold, Gross Profit, Revenue


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Bank of Montreal Annual Data

Oct04Oct05Oct06Oct07Oct08Oct09Oct10Oct11Oct12Oct13
Gross Margin 0.000.000.000.000.000.000.000.000.000.00

Bank of Montreal Quarterly Data

Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14
Gross Margin 0.000.000.000.000.000.000.000.000.000.00
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