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Crane Co (NYSE:CR)
Gross Margin
67.58% (As of Dec. 2015)

Gross Margin is calculated as gross profit divided by its revenue. Crane Co's gross profit for the three months ended in Dec. 2015 was $920 Mil. Crane Co's revenue for the three months ended in Dec. 2015 was $1,361 Mil. Therefore, Crane Co's Gross Margin for the quarter that ended in Dec. 2015 was 67.58%.

CR' s Gross Margin Range Over the Past 10 Years
Min: 32.19   Max: 67.46
Current: 47.98

32.19
67.46

During the past 13 years, the highest Gross Margin of Crane Co was 67.46%. The lowest was 32.19%. And the median was 33.65%.

CR's Gross Margin is ranked higher than
85% of the 1752 Companies
in the Global Diversified Industrials industry.

( Industry Median: 27.99 vs. CR: 47.98 )

Crane Co had a gross margin of 67.58% for the quarter that ended in Dec. 2015 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Crane Co was 10.70% per year.


Definition

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

Crane Co's Gross Margin for the fiscal year that ended in Dec. 2015 is calculated as

Gross Margin (A: Dec. 2015 )=Gross Profit (A: Dec. 2015 ) / Revenue (A: Dec. 2015 )
=3697.5 / 5480.9
=(Revenue - Cost of Goods Sold) / Revenue
=(5480.9 - 1783.4) / 5480.9
=67.46 %

Crane Co's Gross Margin for the quarter that ended in Dec. 2015 is calculated as

Gross Margin (Q: Dec. 2015 )=Gross Profit (Q: Dec. 2015 ) / Revenue (Q: Dec. 2015 )
=919.9 / 1361.3
=(Revenue - Cost of Goods Sold) / Revenue
=(1361.3 - 441.4) / 1361.3
=67.58 %

* 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

Crane Co had a gross margin of 67.58% for the quarter that ended in Dec. 2015 => 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.

Crane Co Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
Gross Margin 32.4032.1932.7633.2533.6033.8933.7034.0434.7567.46

Crane Co Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
Gross Margin 33.2935.4534.9434.5234.0934.8933.8235.5667.5835.44
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