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Consol Energy Inc (NYSE:CNX)
Gross Profit
$977 Mil (TTM As of Dec. 2013)

Consol Energy Inc's gross profit for the three months ended in Dec. 2013 was $-43 Mil. Consol Energy Inc's gross profit for the trailing twelve months (TTM) ended in Dec. 2013 was $977 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Consol Energy Inc's gross profit for the three months ended in Dec. 2013 was $-43 Mil. Consol Energy Inc's revenue for the three months ended in Dec. 2013 was $-438 Mil. Therefore, Consol Energy Inc's Gross Margin for the quarter that ended in Dec. 2013 was 9.92%.

Consol Energy Inc had a gross margin of 9.92% for the quarter that ended in Dec. 2013 => No sustainable competitive advantage

During the past 13 years, the highest Gross Margin of Consol Energy Inc was 37.69%. The lowest was 22.00%. And the median was 31.10%.


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. 2013 is calculated as

Gross Profit (A: Dec. 2013 )=Revenue - Cost of Goods Sold
=3299.685 - 2322.255
=977

Consol Energy Inc's Gross Profit for the quarter that ended in Dec. 2013 is calculated as

Gross Profit (Q: Dec. 2013 )=Revenue - Cost of Goods Sold
=-438.053 - -394.588
=-43

Consol Energy Inc Gross Profit for the trailing twelve months (TTM) ended in Dec. 2013 was 329.851 (Mar. 2013 ) + 336.082 (Jun. 2013 ) + 354.962 (Sep. 2013 ) + -43.465 (Dec. 2013 ) = $977 Mil.

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

Consol Energy Inc's Gross Margin for the quarter that ended in Dec. 2013 is calculated as

Gross Margin (Q: Dec. 2013 )=Gross Profit (Q: Dec. 2013 ) / Revenue (Q: Dec. 2013 )
=(Revenue - Cost of Goods Sold) / Revenue
=-43 / -438.053
=9.92 %

* 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 9.92% for the quarter that ended in Dec. 2013 => 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.

Consol Energy Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Gross_Profit 6661,2531,2169791,3441,6771,7852,3051,307977

Consol Energy Inc Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
Gross_Profit 56757246354029410330336355-43
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