Monsanto Co (XSWX:MOO) Gross Margin % : 59.10% (As of Feb. 2018)

Monsanto Co Gross Margin % Chart

Monsanto Co Annual Data
	Trend	Aug08	Aug09	Aug10	Aug11	Aug12	Aug13	Aug14	Aug15	Aug16	Aug17
Gross Margin %		Get a 7-Day Free Trial					51.50	54.08	54.54	51.97	54.21

Monsanto Co Quarterly Data
	May13	Aug13	Nov13	Feb14	May14	Aug14	Nov14	Feb15	May15	Aug15	Nov15	Feb16	May16	Aug16	Nov16	Feb17	May17	Aug17	Nov17	Feb18
Gross Margin %	Get a 7-Day Free Trial															58.18	56.41	49.89	49.36	59.10

Competitive Comparison of Monsanto Co's Gross Margin %

For the Agricultural Inputs subindustry, Monsanto Co's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* 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. Note that "N/A" values will not show up in the chart.

Monsanto Co's Gross Margin % Distribution in the Agriculture Industry

For the Agriculture industry and Basic Materials sector, Monsanto Co's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Monsanto Co's Gross Margin % falls into.

Monsanto Co Gross Margin % Calculation

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

Monsanto Co's Gross Margin for the fiscal year that ended in Aug. 2017 is calculated as

Monsanto Co's Gross Margin for the quarter that ended in Feb. 2018 is calculated as

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange 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.

Monsanto Co  (XSWX:MOO) Gross Margin % 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

Monsanto Co had a gross margin of 59.10% for the quarter that ended in Feb. 2018 => 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.

Monsanto Co Gross Margin % Related Terms

Thank you for viewing the detailed overview of Monsanto Co's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.

Monsanto Co (XSWX:MOO) Business Description