Switch to:
GuruFocus has detected 5 Warning Signs with Mettler-Toledo International Inc $MTD.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.
Mettler-Toledo International Inc (NYSE:MTD)
Gross Profit
$1,479 Mil (TTM As of Mar. 2017)

Mettler-Toledo International Inc's gross profit for the three months ended in Mar. 2017 was $343 Mil. Mettler-Toledo International Inc's gross profit for the trailing twelve months (TTM) ended in Mar. 2017 was $1,479 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Mettler-Toledo International Inc's gross profit for the three months ended in Mar. 2017 was $343 Mil. Mettler-Toledo International Inc's revenue for the three months ended in Mar. 2017 was $595 Mil. Therefore, Mettler-Toledo International Inc's Gross Margin for the quarter that ended in Mar. 2017 was 57.67%.

Mettler-Toledo International Inc had a gross margin of 57.67% for the quarter that ended in Mar. 2017 => Durable competitive advantage

During the past 13 years, the highest Gross Margin of Mettler-Toledo International Inc was 57.23%. The lowest was 49.96%. And the median was 52.88%.


Definition

Gross Profit is the different between the sale prices and the cost of buying or producing the goods.

Mettler-Toledo International Inc's Gross Profit for the fiscal year that ended in Dec. 2016 is calculated as

Gross Profit (A: Dec. 2016 )=Revenue - Cost of Goods Sold
=2508.257 - 1072.67
=1,436

Mettler-Toledo International Inc's Gross Profit for the quarter that ended in Mar. 2017 is calculated as

Gross Profit (Q: Mar. 2017 )=Revenue - Cost of Goods Sold
=594.567 - 251.667
=343

Mettler-Toledo International Inc Gross Profit for the trailing twelve months (TTM) ended in Mar. 2017 was 347.576 (Jun. 2016 ) + 369.494 (Sep. 2016 ) + 418.61 (Dec. 2016 ) + 342.9 (Mar. 2017 ) = $1,479 Mil.

Gross Profit is the numerator in the calculation of Gross Margin:

Mettler-Toledo International Inc's Gross Margin for the quarter that ended in Mar. 2017 is calculated as

Gross Margin (Q: Mar. 2017 )=Gross Profit (Q: Mar. 2017 ) / Revenue (Q: Mar. 2017 )
=(Revenue - Cost of Goods Sold) / Revenue
=343 / 594.567
=57.67 %

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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

Mettler-Toledo International Inc had a gross margin of 57.67% for the quarter that ended in Mar. 2017 => Durable competitive advantage


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 local exchange's currency.

Mettler-Toledo International Inc Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
Gross_Profit 8969938891,0371,2181,2411,2821,3591,3521,436

Mettler-Toledo International Inc Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
Gross_Profit 394299323340391300348369419343
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)
FEEDBACK