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Contango Oil & Gas Co (AMEX:MCF)
Gross Profit
$74.3 Mil (TTM As of Dec. 2013)

Contango Oil & Gas Co's gross profit for the three months ended in Dec. 2013 was $0.0 Mil. Contango Oil & Gas Co's gross profit for the trailing twelve months (TTM) ended in Dec. 2013 was $74.3 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 Dec. 2013 was $0.0 Mil. Contango Oil & Gas Co's revenue for the three months ended in Dec. 2013 was $0.0 Mil. Therefore, Contango Oil & Gas Co's Gross Margin for the quarter that ended in Dec. 2013 was %.

Contango Oil & Gas Co had a gross margin of % for the quarter that ended in Dec. 2013 => No sustainable competitive advantage

During the past 13 years, the highest Gross Margin of Contango Oil & Gas Co was 89.50%. The lowest was -5493.42%. And the median was 74.27%.

Warning Sign:

Contango Oil & Gas Company gross margin has been in long term decline. The average rate of decline per year is -15.9%.


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 Jun. 2013 is calculated as

Gross Profit (A: Jun. 2013 )=Revenue - Cost of Goods Sold
=127.201 - 28.609
=98.6

Contango Oil & Gas Co's Gross Profit for the quarter that ended in Dec. 2013 is calculated as

Gross Profit (Q: Dec. 2013 )=Revenue - Cost of Goods Sold
=0 - 0
=0.0

Contango Oil & Gas Co Gross Profit for the trailing twelve months (TTM) ended in Dec. 2013 was 21.873 (Mar. 2013 ) + 23.314 (Jun. 2013 ) + 29.08 (Sep. 2013 ) + 0 (Dec. 2013 ) = $74.3 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 Dec. 2013 is calculated as

Gross Margin (Q: Dec. 2013 )=Gross Profit (Q: Dec. 2013 ) / Revenue (Q: Dec. 2013 )
=(Revenue - Cost of Goods Sold) / Revenue
=0.0 / 0
= %

* 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

Contango Oil & Gas Co had a gross margin of % for the quarter that ended in Dec. 2013 => No sustainable 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 own currency.

Contango Oil & Gas Co Annual Data

Jun06Jun07Jun08Jun09Jun10Jun11Dec11Jun12Dec12Jun13
Gross_Profit -6.010.9104.0167.0142.3176.0174.8157.973.846.8

Contango Oil & Gas Co Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
Gross_Profit 38.346.935.537.2-21.723.321.923.329.10.0
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