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Toro Co  (NYSE:TTC) Gross Profit: $909 Mil (TTM As of Jul. 2017)

Toro Co's gross profit for the three months ended in Jul. 2017 was $227 Mil. Toro Co's gross profit for the trailing twelve months (TTM) ended in Jul. 2017 was $909 Mil.

Gross Margin % is calculated as gross profit divided by its revenue. Toro Co's gross profit for the three months ended in Jul. 2017 was $227 Mil. Toro Co's Revenue for the three months ended in Jul. 2017 was $628 Mil. Therefore, Toro Co's Gross Margin % for the quarter that ended in Jul. 2017 was 36.12%.

Toro Co had a gross margin of 36.12% for the quarter that ended in Jul. 2017 => Competition eroding margins

During the past 13 years, the highest Gross Margin % of Toro Co was 36.57%. The lowest was 33.54%. And the median was 34.86%.


Historical Data

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

* Premium members only.

Toro Co Annual Data

Oct07 Oct08 Oct09 Oct10 Oct11 Oct12 Oct13 Oct14 Oct15 Oct16
Gross Profit Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 673.09 724.80 773.27 835.94 874.60

Toro Co Quarterly Data

Oct12 Jan13 Apr13 Jul13 Oct13 Jan14 Apr14 Jul14 Oct14 Jan15 Apr15 Jul15 Oct15 Jan16 Apr16 Jul16 Oct16 Jan17 Apr17 Jul17
Gross Profit Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 216.62 172.14 193.48 316.31 226.79

Competitive Comparison
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap.


Calculation

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

Toro Co's Gross Profit for the fiscal year that ended in Oct. 2016 is calculated as

Gross Profit (A: Oct. 2016 )=Revenue - Cost of Goods Sold
=2392.175 - 1517.58
=875

Toro Co's Gross Profit for the quarter that ended in Jul. 2017 is calculated as

Gross Profit (Q: Jul. 2017 )=Revenue - Cost of Goods Sold
=627.943 - 401.158
=227

Gross Profit for the trailing twelve months (TTM) ended in Jul. 2017 was 172.137 (Oct. 2016 ) + 193.48 (Jan. 2017 ) + 316.314 (Apr. 2017 ) + 226.785 (Jul. 2017 ) = $909 Mil.

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

Toro Co's Gross Margin % for the quarter that ended in Jul. 2017 is calculated as

Gross Margin % (Q: Jul. 2017 )=Gross Profit (Q: Jul. 2017 ) / Revenue (Q: Jul. 2017 )
=(Revenue - Cost of Goods Sold) / Revenue
=227 / 627.943
=36.12 %

* 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

Toro Co had a gross margin of 36.12% for the quarter that ended in Jul. 2017 => Competition eroding margins


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