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Consol Energy Inc (NYSE:CNX)
Gross Profit
$1,248 Mil (TTM As of Sep. 2015)

Consol Energy Inc's gross profit for the three months ended in Sep. 2015 was $480 Mil. Consol Energy Inc's gross profit for the trailing twelve months (TTM) ended in Sep. 2015 was $1,248 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Consol Energy Inc's gross profit for the three months ended in Sep. 2015 was $480 Mil. Consol Energy Inc's revenue for the three months ended in Sep. 2015 was $814 Mil. Therefore, Consol Energy Inc's Gross Margin for the quarter that ended in Sep. 2015 was 58.96%.

Consol Energy Inc had a gross margin of 58.96% for the quarter that ended in Sep. 2015 => Durable competitive advantage

During the past 13 years, the highest Gross Margin of Consol Energy Inc was 44.52%. The lowest was 27.47%. And the median was 33.49%.


Definition

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

Consol Energy 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
=3726.804 - 2295.045
=1,432

Consol Energy Inc's Gross Profit for the quarter that ended in Sep. 2015 is calculated as

Gross Profit (Q: Sep. 2015 )=Revenue - Cost of Goods Sold
=813.938 - 334.022
=480

Consol Energy Inc Gross Profit for the trailing twelve months (TTM) ended in Sep. 2015 was 126.426 (Dec. 2014 ) + 413.492 (Mar. 2015 ) + 228.477 (Jun. 2015 ) + 479.916 (Sep. 2015 ) = $1,248 Mil.

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

Consol Energy Inc's Gross Margin for the quarter that ended in Sep. 2015 is calculated as

Gross Margin (Q: Sep. 2015 )=Gross Profit (Q: Sep. 2015 ) / Revenue (Q: Sep. 2015 )
=(Revenue - Cost of Goods Sold) / Revenue
=480 / 813.938
=58.96 %

* 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

Consol Energy Inc had a gross margin of 58.96% for the quarter that ended in Sep. 2015 => Durable 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.

Consol Energy Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
Gross_Profit 1,2169791,3441,6771,7851,8721,6371,0811,4321,520

Consol Energy Inc Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
Gross_Profit 32631480434391126413228480398
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