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Mid-Con Energy Partners LP (NAS:MCEP)
Gross Profit
$93.9 Mil (TTM As of Dec. 2014)

Mid-Con Energy Partners LP's gross profit for the three months ended in Dec. 2014 was $42.0 Mil. Mid-Con Energy Partners LP's gross profit for the trailing twelve months (TTM) ended in Dec. 2014 was $93.9 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. 2014 was $42.0 Mil. Mid-Con Energy Partners LP's revenue for the three months ended in Dec. 2014 was $51.6 Mil. Therefore, Mid-Con Energy Partners LP's Gross Margin for the quarter that ended in Dec. 2014 was 81.43%.

Mid-Con Energy Partners LP had a gross margin of 81.43% for the quarter that ended in Dec. 2014 => Durable competitive advantage

During the past 5 years, the highest Gross Margin of Mid-Con Energy Partners LP was 80.81%. The lowest was 51.49%. And the median was 74.33%.


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. 2014 is calculated as

Gross Profit (A: Dec. 2014 )=Revenue - Cost of Goods Sold
=126.272 - 32.416
=93.9

Mid-Con Energy Partners LP's Gross Profit for the quarter that ended in Dec. 2014 is calculated as

Gross Profit (Q: Dec. 2014 )=Revenue - Cost of Goods Sold
=51.616 - 9.586
=42.0

Mid-Con Energy Partners LP Gross Profit for the trailing twelve months (TTM) ended in Dec. 2014 was 13.712 (Mar. 2014 ) + 11.355 (Jun. 2014 ) + 26.759 (Sep. 2014 ) + 42.03 (Dec. 2014 ) = $93.9 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. 2014 is calculated as

Gross Margin (Q: Dec. 2014 )=Gross Profit (Q: Dec. 2014 ) / Revenue (Q: Dec. 2014 )
=(Revenue - Cost of Goods Sold) / Revenue
=42.0 / 51.616
=81.43 %

* 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 81.43% for the quarter that ended in Dec. 2014 => 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

Dec10Dec11Dec12Dec13Dec14
Gross_Profit 0.00.00.00.00.09.028.054.459.993.9

Mid-Con Energy Partners LP Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
Gross_Profit 9.65.614.918.210.416.413.711.426.842.0
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