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Contango Oil & Gas Co (AMEX:MCF)
Gross Profit
$47.31 Mil (TTM As of Sep. 2016)

Contango Oil & Gas Co's gross profit for the three months ended in Sep. 2016 was $11.42 Mil. Contango Oil & Gas Co's gross profit for the trailing twelve months (TTM) ended in Sep. 2016 was $47.31 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Contango Oil & Gas Co's gross profit for the three months ended in Sep. 2016 was $11.42 Mil. Contango Oil & Gas Co's revenue for the three months ended in Sep. 2016 was $19.58 Mil. Therefore, Contango Oil & Gas Co's Gross Margin for the quarter that ended in Sep. 2016 was 58.33%.

Contango Oil & Gas Co had a gross margin of 58.33% for the quarter that ended in Sep. 2016 => Durable competitive advantage

During the past 13 years, the highest Gross Margin of Contango Oil & Gas Co was 88.71%. The lowest was -777.84%. And the median was 76.63%.

Warning Sign:

Contango Oil & Gas Co gross margin has been in long term decline. The average rate of decline per year is -4.2%.


Definition

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

Contango Oil & Gas Co'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
=116.505 - 37.84
=78.67

Contango Oil & Gas Co's Gross Profit for the quarter that ended in Sep. 2016 is calculated as

Gross Profit (Q: Sep. 2016 )=Revenue - Cost of Goods Sold
=19.576 - 8.158
=11.42

Contango Oil & Gas Co Gross Profit for the trailing twelve months (TTM) ended in Sep. 2016 was 13.568 (Dec. 2015 ) + 9.978 (Mar. 2016 ) + 12.342 (Jun. 2016 ) + 11.418 (Sep. 2016 ) = $47.31 Mil.

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

Contango Oil & Gas Co'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
=11.42 / 19.576
=58.33 %

* 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

Contango Oil & Gas Co had a gross margin of 58.33% for the quarter that ended in Sep. 2016 => Durable competitive advantage


Related Terms

Cost of Goods Sold, Gross Margin, Revenue


Historical Data

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

Contango Oil & Gas Co Annual Data

Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13Dec14Dec15
Gross_Profit -6.0410.87103.35141.16121.47166.28153.7443.55229.2278.67

Contango Oil & Gas Co Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
Gross_Profit 66.8453.7639.4220.7424.3620.0013.579.9812.3411.42
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