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Carrizo Oil & Gas, Inc. (NAS:CRZO)
Gross Profit
$444.8 Mil (TTM As of Dec. 2013)

Carrizo Oil & Gas, Inc.'s gross profit for the three months ended in Dec. 2013 was $110.8 Mil. Carrizo Oil & Gas, Inc.'s gross profit for the trailing twelve months (TTM) ended in Dec. 2013 was $444.8 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Carrizo Oil & Gas, Inc.'s gross profit for the three months ended in Dec. 2013 was $110.8 Mil. Carrizo Oil & Gas, Inc.'s revenue for the three months ended in Dec. 2013 was $129.7 Mil. Therefore, Carrizo Oil & Gas, Inc.'s Gross Margin for the quarter that ended in Dec. 2013 was 74.13%.

Carrizo Oil & Gas, Inc. had a gross margin of 74.13% for the quarter that ended in Dec. 2013 => Durable competitive advantage

During the past 13 years, the highest Gross Margin of Carrizo Oil & Gas, Inc. was 86.65%. The lowest was 53.85%. And the median was 80.89%.


Definition

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

Carrizo Oil & Gas, 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
=520.182 - 75.34
=444.8

Carrizo Oil & Gas, 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
=129.728 - 33.566
=96.2

Carrizo Oil & Gas, Inc. Gross Profit for the trailing twelve months (TTM) ended in Dec. 2013 was 95.333 (Mar. 2013 ) + 114.98 (Jun. 2013 ) + 123.68 (Sep. 2013 ) + 110.849 (Dec. 2013 ) = $444.8 Mil.

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

Carrizo Oil & Gas, 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
=96.2 / 129.728
=74.13 %

* 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

Carrizo Oil & Gas, Inc. had a gross margin of 74.13% for the quarter that ended in Dec. 2013 => 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.

Carrizo Oil & Gas, Inc. Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Gross_Profit 44.067.766.5101.1172.282.4107.1164.5313.4444.8

Carrizo Oil & Gas, Inc. Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
Gross_Profit 42.045.965.671.483.393.195.3115.0123.7110.8
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