Switch to:
Marriott International Inc (NAS:MAR)
Gross Margin
14.54% (As of Sep. 2014)

Gross Margin is calculated as gross profit divided by its revenue. Marriott International Inc's gross profit for the three months ended in Sep. 2014 was $503 Mil. Marriott International Inc's revenue for the three months ended in Sep. 2014 was $3,460 Mil. Therefore, Marriott International Inc's Gross Margin for the quarter that ended in Sep. 2014 was 14.54%.

MAR' s 10-Year Gross Margin Range
Min: 9.88   Max: 15.06
Current: 13.85

9.88
15.06

During the past 13 years, the highest Gross Margin of Marriott International Inc was 15.06%. The lowest was 9.88%. And the median was 12.61%.

MAR's Gross Marginis ranked lower than
100% of the Companies
in the Global Lodging industry.

( Industry Median: vs. MAR: 13.85 )

Marriott International Inc had a gross margin of 14.54% for the quarter that ended in Sep. 2014 => No sustainable competitive advantage

The 3-Year average Growth Rate of Gross Margin for Marriott International Inc was 2.50% per year.


Definition

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

Marriott International Inc's Gross Margin for the fiscal year that ended in Dec. 2013 is calculated as

Gross Margin (A: Dec. 2013 )=Gross Profit (A: Dec. 2013 ) / Revenue (A: Dec. 2013 )
=1714 / 12784
=(Revenue - Cost of Goods Sold) / Revenue
=(12784 - 11070) / 12784
=13.41 %

Marriott 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 )
=503 / 3460
=(Revenue - Cost of Goods Sold) / Revenue
=(3460 - 2957) / 3460
=14.54 %

* 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

Marriott International Inc had a gross margin of 14.54% for the quarter that ended in Sep. 2014 => No sustainable 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.

Marriott International Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Gross Margin 10.7313.0514.7115.0612.6011.3212.6213.0113.4213.41

Marriott International Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
Gross Margin 14.5212.6413.7113.2114.4713.4812.4613.3014.9814.54
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK