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Quicksilver Resources Inc (NYSE:KWK)
Gross Profit
\$198.7 Mil (TTM As of Jun. 2014)

Quicksilver Resources Inc's gross profit for the three months ended in Jun. 2014 was \$40.6 Mil. Quicksilver Resources Inc's gross profit for the trailing twelve months (TTM) ended in Jun. 2014 was \$198.7 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Quicksilver Resources Inc's gross profit for the three months ended in Jun. 2014 was \$40.6 Mil. Quicksilver Resources Inc's revenue for the three months ended in Jun. 2014 was \$118.0 Mil. Therefore, Quicksilver Resources Inc's Gross Margin for the quarter that ended in Jun. 2014 was 34.40%.

Quicksilver Resources Inc had a gross margin of 34.40% for the quarter that ended in Jun. 2014 => Competition eroding margins

During the past 13 years, the highest Gross Margin of Quicksilver Resources Inc was 80.47%. The lowest was 47.35%. And the median was 65.25%.

Warning Sign:

Quicksilver Resources Inc gross margin has been in long term decline. The average rate of decline per year is -11.1%.

Definition

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

Quicksilver Resources Inc's Gross Profit for the fiscal year that ended in Dec. 2013 is calculated as

 Gross Profit (A: Dec. 2013 ) = Revenue - Cost of Goods Sold = 561.562 - 213.409 = 348.2

Quicksilver Resources Inc's Gross Profit for the quarter that ended in Jun. 2014 is calculated as

 Gross Profit (Q: Jun. 2014 ) = Revenue - Cost of Goods Sold = 118.032 - 77.43 = 40.6

Quicksilver Resources Inc Gross Profit for the trailing twelve months (TTM) ended in Jun. 2014 was 79.166 (Sep. 2013 ) + 60.106 (Dec. 2013 ) + 18.87 (Mar. 2014 ) + 40.602 (Jun. 2014 ) = \$198.7 Mil.

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

Quicksilver Resources Inc's Gross Margin for the quarter that ended in Jun. 2014 is calculated as

 Gross Margin (Q: Jun. 2014 ) = Gross Profit (Q: Jun. 2014 ) / Revenue (Q: Jun. 2014 ) = (Revenue - Cost of Goods Sold) / Revenue = 40.6 / 118.032 = 34.40 %

* All numbers are in millions except for per share data and ratio. All numbers are in their own 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

Quicksilver Resources Inc had a gross margin of 34.40% for the quarter that ended in Jun. 2014 => Competition eroding margins

Related Terms

Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Quicksilver Resources Inc Annual Data

 Dec04 Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Gross_Profit 113.3 222.5 278.1 405.5 644.3 644.3 645.5 637.9 321.7 265.9

Quicksilver Resources Inc Quarterly Data

 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Gross_Profit 90.4 87.8 86.1 92.8 32.0 94.6 79.2 60.1 18.9 40.6
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