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Mid-Con Energy Partners LP (NAS:MCEP)
Gross Profit
\$29.77 Mil (TTM As of Sep. 2016)

Mid-Con Energy Partners LP's gross profit for the three months ended in Sep. 2016 was \$7.50 Mil. Mid-Con Energy Partners LP's gross profit for the trailing twelve months (TTM) ended in Sep. 2016 was \$29.77 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Mid-Con Energy Partners LP's gross profit for the three months ended in Sep. 2016 was \$7.50 Mil. Mid-Con Energy Partners LP's revenue for the three months ended in Sep. 2016 was \$13.97 Mil. Therefore, Mid-Con Energy Partners LP's Gross Margin for the quarter that ended in Sep. 2016 was 53.73%.

Mid-Con Energy Partners LP had a gross margin of 53.73% for the quarter that ended in Sep. 2016 => Durable competitive advantage

During the past 6 years, the highest Gross Margin of Mid-Con Energy Partners LP was 80.81%. The lowest was 50.85%. And the median was 72.96%.

Definition

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

Mid-Con Energy Partners LP's Gross Profit for the fiscal year that ended in Dec. 2015 is calculated as

 Gross Profit (A: Dec. 2015 ) = Revenue - Cost of Goods Sold = 96.28 - 37.078 = 59.20

Mid-Con Energy Partners LP's Gross Profit for the quarter that ended in Sep. 2016 is calculated as

 Gross Profit (Q: Sep. 2016 ) = Revenue - Cost of Goods Sold = 13.966 - 6.462 = 7.50

Mid-Con Energy Partners LP Gross Profit for the trailing twelve months (TTM) ended in Sep. 2016 was 16.91 (Dec. 2015 ) + 7.18 (Mar. 2016 ) + -1.82 (Jun. 2016 ) + 7.504 (Sep. 2016 ) = \$29.77 Mil.

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

Mid-Con Energy Partners LP's Gross Margin for the quarter that ended in Sep. 2016 is calculated as

 Gross Margin (Q: Sep. 2016 ) = Gross Profit (Q: Sep. 2016 ) / Revenue (Q: Sep. 2016 ) = (Revenue - Cost of Goods Sold) / Revenue = 7.50 / 13.966 = 53.73 %

* 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

Mid-Con Energy Partners LP had a gross margin of 53.73% for the quarter that ended in Sep. 2016 => Durable competitive advantage

Related Terms

Historical Data

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

Mid-Con Energy Partners LP Annual Data

 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Gross_Profit 0.00 0.00 0.00 0.00 9.00 28.14 54.36 59.88 93.86 59.20

Mid-Con Energy Partners LP Quarterly Data

 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Gross_Profit 11.36 26.76 42.03 9.19 3.80 29.30 16.91 7.18 -1.82 7.50
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