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U S Energy Corp (NAS:USEG)
Gross Profit
$20.98 Mil (TTM As of Dec. 2014)

U S Energy Corp's gross profit for the three months ended in Dec. 2014 was $2.02 Mil. U S Energy Corp's gross profit for the trailing twelve months (TTM) ended in Dec. 2014 was $20.98 Mil.

Gross Margin is calculated as gross profit divided by its revenue. U S Energy Corp's gross profit for the three months ended in Dec. 2014 was $2.02 Mil. U S Energy Corp's revenue for the three months ended in Dec. 2014 was $5.07 Mil. Therefore, U S Energy Corp's Gross Margin for the quarter that ended in Dec. 2014 was 39.77%.

U S Energy Corp had a gross margin of 39.77% for the quarter that ended in Dec. 2014 => Competition eroding margins

During the past 13 years, the highest Gross Margin of U S Energy Corp was 70.05%. The lowest was -222.51%. And the median was 28.94%.


Definition

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

U S Energy Corp's Gross Profit for the fiscal year that ended in Dec. 2014 is calculated as

Gross Profit (A: Dec. 2014 )=Revenue - Cost of Goods Sold
=32.379 - 10.638
=21.74

U S Energy Corp's Gross Profit for the quarter that ended in Dec. 2014 is calculated as

Gross Profit (Q: Dec. 2014 )=Revenue - Cost of Goods Sold
=5.067 - 3.052
=2.02

U S Energy Corp Gross Profit for the trailing twelve months (TTM) ended in Dec. 2014 was 5.527 (Mar. 2014 ) + 6.542 (Jun. 2014 ) + 6.9 (Sep. 2014 ) + 2.015 (Dec. 2014 ) = $20.98 Mil.

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

U S Energy Corp's Gross Margin for the quarter that ended in Dec. 2014 is calculated as

Gross Margin (Q: Dec. 2014 )=Gross Profit (Q: Dec. 2014 ) / Revenue (Q: Dec. 2014 )
=(Revenue - Cost of Goods Sold) / Revenue
=2.02 / 5.067
=39.77 %

* 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

U S Energy Corp had a gross margin of 39.77% for the quarter that ended in Dec. 2014 => Competition eroding margins


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.

U S Energy Corp Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
Gross_Profit -0.83-1.81-1.420.684.6318.6017.0418.8523.1821.74

U S Energy Corp Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
Gross_Profit 5.132.324.445.355.717.045.536.546.902.02
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