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Carrizo Oil & Gas Inc (NAS:CRZO)
Gross Profit
\$281.9 Mil (TTM As of Sep. 2016)

Carrizo Oil & Gas Inc's gross profit for the three months ended in Sep. 2016 was \$80.6 Mil. Carrizo Oil & Gas Inc's gross profit for the trailing twelve months (TTM) ended in Sep. 2016 was \$281.9 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 Sep. 2016 was \$80.6 Mil. Carrizo Oil & Gas Inc's revenue for the three months ended in Sep. 2016 was \$111.2 Mil. Therefore, Carrizo Oil & Gas Inc's Gross Margin for the quarter that ended in Sep. 2016 was 72.48%.

Carrizo Oil & Gas Inc had a gross margin of 72.48% for the quarter that ended in Sep. 2016 => Durable competitive advantage

During the past 13 years, the highest Gross Margin of Carrizo Oil & Gas Inc was 85.52%. The lowest was 70.61%. And the median was 80.29%.

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. 2015 is calculated as

 Gross Profit (A: Dec. 2015 ) = Revenue - Cost of Goods Sold = 429.203 - 116.99 = 312.2

Carrizo Oil & Gas Inc's Gross Profit for the quarter that ended in Sep. 2016 is calculated as

 Gross Profit (Q: Sep. 2016 ) = Revenue - Cost of Goods Sold = 111.177 - 30.594 = 80.6

Carrizo Oil & Gas Inc Gross Profit for the trailing twelve months (TTM) ended in Sep. 2016 was 70.061 (Dec. 2015 ) + 52.086 (Mar. 2016 ) + 79.133 (Jun. 2016 ) + 80.583 (Sep. 2016 ) = \$281.9 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 Sep. 2016 is calculated as

 Gross Margin (Q: Sep. 2016 ) = Gross Profit (Q: Sep. 2016 ) / Revenue (Q: Sep. 2016 ) = (Revenue - Cost of Goods Sold) / Revenue = 80.6 / 111.177 = 72.48 %

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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 72.48% for the quarter that ended in Sep. 2016 => Durable competitive advantage

Related Terms

Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Carrizo Oil & Gas Inc Annual Data

 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Gross_Profit 66.5 101.1 172.2 82.4 107.1 164.5 313.4 444.8 598.0 312.2

Carrizo Oil & Gas Inc Quarterly Data

 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Gross_Profit 166.0 164.6 130.4 71.3 93.4 77.5 70.1 52.1 79.1 80.6
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