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Mid-Con Energy Partners LP (NAS:MCEP)
Gross Profit
$51.57 Mil (TTM As of Jun. 2016)

Mid-Con Energy Partners LP's gross profit for the three months ended in Jun. 2016 was $-1.82 Mil. Mid-Con Energy Partners LP's gross profit for the trailing twelve months (TTM) ended in Jun. 2016 was $51.57 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Mid-Con Energy Partners LP's gross profit for the three months ended in Jun. 2016 was $-1.82 Mil. Mid-Con Energy Partners LP's revenue for the three months ended in Jun. 2016 was $4.69 Mil. Therefore, Mid-Con Energy Partners LP's Gross Margin for the quarter that ended in Jun. 2016 was -38.81%.

Mid-Con Energy Partners LP had a gross margin of -38.81% for the quarter that ended in Jun. 2016 => No sustainable competitive advantage

During the past 6 years, the highest Gross Margin of Mid-Con Energy Partners LP was 80.81%. The lowest was 51.49%. And the median was 72.96%.


Definition

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

Mid-Con Energy Partners LP'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
=96.28 - 37.078
=59.20

Mid-Con Energy Partners LP's Gross Profit for the quarter that ended in Jun. 2016 is calculated as

Gross Profit (Q: Jun. 2016 )=Revenue - Cost of Goods Sold
=4.689 - 6.509
=-1.82

Mid-Con Energy Partners LP Gross Profit for the trailing twelve months (TTM) ended in Jun. 2016 was 29.297 (Sep. 2015 ) + 16.91 (Dec. 2015 ) + 7.18 (Mar. 2016 ) + -1.82 (Jun. 2016 ) = $51.57 Mil.

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

Mid-Con Energy Partners LP's Gross Margin for the quarter that ended in Jun. 2016 is calculated as

Gross Margin (Q: Jun. 2016 )=Gross Profit (Q: Jun. 2016 ) / Revenue (Q: Jun. 2016 )
=(Revenue - Cost of Goods Sold) / Revenue
=-1.82 / 4.689
=-38.81 %

* 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

Mid-Con Energy Partners LP had a gross margin of -38.81% for the quarter that ended in Jun. 2016 => 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.

Mid-Con Energy Partners LP Annual Data

Dec10Dec11Dec12Dec13Dec14Dec15
Gross_Profit 0.000.000.000.009.0028.1454.3659.8893.8659.20

Mid-Con Energy Partners LP Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
Gross_Profit 13.7111.3626.7642.039.193.8029.3016.917.18-1.82
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