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United States Lime & Minerals Inc (NAS:USLM)
Gross Profit
$28.7 Mil (TTM As of Dec. 2015)

United States Lime & Minerals Inc's gross profit for the three months ended in Dec. 2015 was $5.5 Mil. United States Lime & Minerals Inc's gross profit for the trailing twelve months (TTM) ended in Dec. 2015 was $28.7 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 Dec. 2015 was $5.5 Mil. United States Lime & Minerals Inc's revenue for the three months ended in Dec. 2015 was $31.3 Mil. Therefore, United States Lime & Minerals Inc's Gross Margin for the quarter that ended in Dec. 2015 was 17.48%.

United States Lime & Minerals Inc had a gross margin of 17.48% for the quarter that ended in Dec. 2015 => No sustainable competitive advantage

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 Dec. 2015 is calculated as

Gross Profit (Q: Dec. 2015 )=Revenue - Cost of Goods Sold
=31.294 - 25.824
=5.5

United States Lime & Minerals Inc Gross Profit for the trailing twelve months (TTM) ended in Dec. 2015 was 5.864 (Mar. 2015 ) + 7.013 (Jun. 2015 ) + 10.367 (Sep. 2015 ) + 5.47 (Dec. 2015 ) = $28.7 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 Dec. 2015 is calculated as

Gross Margin (Q: Dec. 2015 )=Gross Profit (Q: Dec. 2015 ) / Revenue (Q: Dec. 2015 )
=(Revenue - Cost of Goods Sold) / Revenue
=5.5 / 31.294
=17.48 %

* 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 17.48% for the quarter that ended in Dec. 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

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
Gross_Profit 28.026.031.328.836.041.333.430.836.828.7

United States Lime & Minerals Inc Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
Gross_Profit 6.48.610.49.97.95.97.010.45.57.8
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