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United States Lime & Minerals Inc (NAS:USLM)
Gross Profit
\$30.7 Mil (TTM As of Mar. 2016)

United States Lime & Minerals Inc's gross profit for the three months ended in Mar. 2016 was \$7.8 Mil. United States Lime & Minerals Inc's gross profit for the trailing twelve months (TTM) ended in Mar. 2016 was \$30.7 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. 2016 was \$7.8 Mil. United States Lime & Minerals Inc's revenue for the three months ended in Mar. 2016 was \$33.6 Mil. Therefore, United States Lime & Minerals Inc's Gross Margin for the quarter that ended in Mar. 2016 was 23.37%.

United States Lime & Minerals Inc had a gross margin of 23.37% for the quarter that ended in Mar. 2016 => Competition eroding margins

During the past 13 years, the highest Gross Margin of United States Lime & Minerals Inc was 29.00%. The lowest was 20.77%. And the median was 23.88%.

Warning Sign:

United States Lime & Minerals Inc gross margin has been in long term decline. The average rate of decline per year is -4.5%.

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. 2015 is calculated as

 Gross Profit (A: Dec. 2015 ) = Revenue - Cost of Goods Sold = 130.837 - 102.123 = 28.7

United States Lime & Minerals Inc's Gross Profit for the quarter that ended in Mar. 2016 is calculated as

 Gross Profit (Q: Mar. 2016 ) = Revenue - Cost of Goods Sold = 33.586 - 25.738 = 7.8

United States Lime & Minerals Inc Gross Profit for the trailing twelve months (TTM) ended in Mar. 2016 was 7.013 (Jun. 2015 ) + 10.367 (Sep. 2015 ) + 5.47 (Dec. 2015 ) + 7.848 (Mar. 2016 ) = \$30.7 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. 2016 is calculated as

 Gross Margin (Q: Mar. 2016 ) = Gross Profit (Q: Mar. 2016 ) / Revenue (Q: Mar. 2016 ) = (Revenue - Cost of Goods Sold) / Revenue = 7.8 / 33.586 = 23.37 %

* 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 23.37% for the quarter that ended in Mar. 2016 => Competition eroding margins

Related Terms

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

 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Gross_Profit 28.0 26.0 31.3 28.8 36.0 41.3 33.4 30.8 36.8 28.7

United States Lime & Minerals Inc Quarterly Data

 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Gross_Profit 6.4 8.6 10.4 9.9 7.9 5.9 7.0 10.4 5.5 7.8
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