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Mid-Con Energy Partners LP (NAS:MCEP)
Gross Profit
$59.88 Mil (TTM As of Dec. 2013)

Mid-Con Energy Partners LP's gross profit for the three months ended in Dec. 2013 was $16.38 Mil. Mid-Con Energy Partners LP's gross profit for the trailing twelve months (TTM) ended in Dec. 2013 was $59.88 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 Dec. 2013 was $16.38 Mil. Mid-Con Energy Partners LP's revenue for the three months ended in Dec. 2013 was $22.04 Mil. Therefore, Mid-Con Energy Partners LP's Gross Margin for the quarter that ended in Dec. 2013 was 74.34%.

Mid-Con Energy Partners LP had a gross margin of 74.34% for the quarter that ended in Dec. 2013 => Durable competitive advantage

During the past 4 years, the highest Gross Margin of Mid-Con Energy Partners LP was 80.81%. The lowest was 51.49%. And the median was 73.19%.


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. 2013 is calculated as

Gross Profit (A: Dec. 2013 )=Revenue - Cost of Goods Sold
=80.061 - 20.183
=59.88

Mid-Con Energy Partners LP's Gross Profit for the quarter that ended in Dec. 2013 is calculated as

Gross Profit (Q: Dec. 2013 )=Revenue - Cost of Goods Sold
=22.038 - 5.654
=16.38

Mid-Con Energy Partners LP Gross Profit for the trailing twelve months (TTM) ended in Dec. 2013 was 14.92 (Mar. 2013 ) + 18.161 (Jun. 2013 ) + 10.413 (Sep. 2013 ) + 16.384 (Dec. 2013 ) = $59.88 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 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
=16.38 / 22.038
=74.34 %

* 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 74.34% 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.

Mid-Con Energy Partners LP Annual Data

Dec10Dec11Dec12Dec13
Gross_Profit 0.000.000.000.000.000.009.0028.1454.3659.88

Mid-Con Energy Partners LP Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
Gross_Profit 17.59-4.627.9826.446.9413.0014.9218.1610.4116.38
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