Switch to:
GuruFocus has detected 4 Warning Signs with Mylan NV $MYL.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.
Mylan NV (NAS:MYL)
Gross Profit
$4,875 Mil (TTM As of Mar. 2017)

Mylan NV's gross profit for the three months ended in Mar. 2017 was $1,085 Mil. Mylan NV's gross profit for the trailing twelve months (TTM) ended in Mar. 2017 was $4,875 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Mylan NV's gross profit for the three months ended in Mar. 2017 was $1,085 Mil. Mylan NV's revenue for the three months ended in Mar. 2017 was $2,720 Mil. Therefore, Mylan NV's Gross Margin for the quarter that ended in Mar. 2017 was 39.90%.

Mylan NV had a gross margin of 39.90% for the quarter that ended in Mar. 2017 => Competition eroding margins

During the past 13 years, the highest Gross Margin of Mylan NV was 52.34%. The lowest was 40.30%. And the median was 42.60%.


Definition

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

Mylan NV'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
=11076.9 - 6379.9
=4,697

Mylan NV's Gross Profit for the quarter that ended in Mar. 2017 is calculated as

Gross Profit (Q: Mar. 2017 )=Revenue - Cost of Goods Sold
=2719.5 - 1634.5
=1,085

Mylan NV Gross Profit for the trailing twelve months (TTM) ended in Mar. 2017 was 1171.7 (Jun. 2016 ) + 1283.3 (Sep. 2016 ) + 1335 (Dec. 2016 ) + 1085 (Mar. 2017 ) = $4,875 Mil.

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

Mylan NV'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
=1,085 / 2719.5
=39.90 %

* 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

Mylan NV had a gross margin of 39.90% for the quarter that ended in Mar. 2017 => 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 local exchange's currency.

Mylan NV Annual Data

Mar07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
Gross_Profit 8442,0702,0742,2172,5632,9083,0403,5284,2164,697

Mylan NV Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
Gross_Profit 9698301,0081,3151,0639071,1721,2831,3351,085
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