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United States Lime & Minerals Inc (NAS:USLM)
Gross Profit
$34.1 Mil (TTM As of Mar. 2015)

United States Lime & Minerals Inc's gross profit for the three months ended in Mar. 2015 was $5.9 Mil. United States Lime & Minerals Inc's gross profit for the trailing twelve months (TTM) ended in Mar. 2015 was $34.1 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. 2015 was $5.9 Mil. United States Lime & Minerals Inc's revenue for the three months ended in Mar. 2015 was $30.1 Mil. Therefore, United States Lime & Minerals Inc's Gross Margin for the quarter that ended in Mar. 2015 was 19.51%.

United States Lime & Minerals Inc had a gross margin of 19.51% for the quarter that ended in Mar. 2015 => No sustainable competitive advantage

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 27.17%.

Warning Sign:

United States Lime & Minerals Inc gross margin has been in long term decline. The average rate of decline per year is -1.9%.


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. 2014 is calculated as

Gross Profit (A: Dec. 2014 )=Revenue - Cost of Goods Sold
=149.841 - 113.05
=36.8

United States Lime & Minerals Inc's Gross Profit for the quarter that ended in Mar. 2015 is calculated as

Gross Profit (Q: Mar. 2015 )=Revenue - Cost of Goods Sold
=30.064 - 24.2
=5.9

United States Lime & Minerals Inc Gross Profit for the trailing twelve months (TTM) ended in Mar. 2015 was 10.423 (Jun. 2014 ) + 9.883 (Sep. 2014 ) + 7.893 (Dec. 2014 ) + 5.864 (Mar. 2015 ) = $34.1 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. 2015 is calculated as

Gross Margin (Q: Mar. 2015 )=Gross Profit (Q: Mar. 2015 ) / Revenue (Q: Mar. 2015 )
=(Revenue - Cost of Goods Sold) / Revenue
=5.9 / 30.064
=19.51 %

* 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 19.51% for the quarter that ended in Mar. 2015 => 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.

United States Lime & Minerals Inc Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
Gross_Profit 19.428.026.031.328.836.041.333.430.836.8

United States Lime & Minerals Inc Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
Gross_Profit 8.16.39.09.16.48.610.49.97.95.9
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