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Blyth Inc  (NYSE:BTH) Gross Margin %: 58.94% (As of Jun. 2015)

Gross Margin % is calculated as gross profit divided by its revenue. Blyth Inc's Gross Profit for the three months ended in Jun. 2015 was $51.9 Mil. Blyth Inc's Revenue for the three months ended in Jun. 2015 was $88.0 Mil. Therefore, Blyth Inc's Gross Margin % for the quarter that ended in Jun. 2015 was 58.94%.




Blyth Inc had a gross margin of 58.94% for the quarter that ended in Jun. 2015 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Blyth Inc was 0.00% per year.


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.

Blyth Inc Annual Data

Jan05 Jan06 Jan07 Jan08 Jan09 Jan10 Jan11 Dec12 Dec13 Dec14
Gross Margin % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 54.85 55.46 66.77 62.64 62.70

Blyth Inc Quarterly Data

Jul10 Oct10 Jan11 Apr11 Jul11 Oct11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15
Gross Margin % 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 61.33 58.95 65.29 56.43 58.94

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

Blyth Inc's Gross Margin for the fiscal year that ended in Dec. 2014 is calculated as

Gross Margin % (A: Dec. 2014 )=Gross Profit (A: Dec. 2014 ) / Revenue (A: Dec. 2014 )
=307.2 / 490.02
=(Revenue - Cost of Goods Sold) / Revenue
=(490.02 - 182.78) / 490.02
=62.70 %

Blyth Inc's Gross Margin for the quarter that ended in Jun. 2015 is calculated as


Gross Margin % (Q: Jun. 2015 )=Gross Profit (Q: Jun. 2015 ) / Revenue (Q: Jun. 2015 )
=-36.1 / 87.989
=(Revenue - Cost of Goods Sold) / Revenue
=(87.989 - 36.125) / 87.989
=58.94 %

* 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

Blyth Inc had a gross margin of 58.94% for the quarter that ended in Jun. 2015 => 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.


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