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United States Lime & Minerals Inc (NAS:USLM)
Gross Profit
$36.7 Mil (TTM As of Mar. 2014)

United States Lime & Minerals Inc's gross profit for the three months ended in Mar. 2014 was $8.6 Mil. United States Lime & Minerals Inc's gross profit for the trailing twelve months (TTM) ended in Mar. 2014 was $36.7 Mil.

Gross Margin is calculated as gross profit divided by its revenue. United States Lime & Minerals Inc's gross profit for the three months ended in Mar. 2014 was $8.6 Mil. United States Lime & Minerals Inc's revenue for the three months ended in Mar. 2014 was $36.7 Mil. Therefore, United States Lime & Minerals Inc's Gross Margin for the quarter that ended in Mar. 2014 was 23.42%.

United States Lime & Minerals Inc had a gross margin of 23.42% for the quarter that ended in Mar. 2014 => Competition eroding margins

During the past 13 years, the highest Gross Margin of United States Lime & Minerals Inc was 43.00%. The lowest was 20.77%. And the median was 27.18%.


Definition

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

United States Lime & Minerals 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
=133.765 - 102.965
=30.8

United States Lime & Minerals Inc's Gross Profit for the quarter that ended in Mar. 2014 is calculated as

Gross Profit (Q: Mar. 2014 )=Revenue - Cost of Goods Sold
=36.691 - 28.099
=8.6

United States Lime & Minerals Inc Gross Profit for the trailing twelve months (TTM) ended in Mar. 2014 was 12.563 (Jun. 2013 ) + 9.11 (Sep. 2013 ) + 6.435 (Dec. 2013 ) + 8.592 (Mar. 2014 ) = $36.7 Mil.

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

United States Lime & Minerals Inc's Gross Margin for the quarter that ended in Mar. 2014 is calculated as

Gross Margin (Q: Mar. 2014 )=Gross Profit (Q: Mar. 2014 ) / Revenue (Q: Mar. 2014 )
=(Revenue - Cost of Goods Sold) / Revenue
=8.6 / 36.691
=23.42 %

* 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

United States Lime & Minerals Inc had a gross margin of 23.42% for the quarter that ended in Mar. 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.

United States Lime & Minerals Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Gross_Profit 17.019.428.026.031.328.836.041.333.430.8

United States Lime & Minerals Inc Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
Gross_Profit 9.09.212.17.88.16.312.69.16.48.6
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