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Mid-Con Energy Partners LP (NAS:MCEP)
Gross Profit
$57.19 Mil (TTM As of Mar. 2016)

Mid-Con Energy Partners LP's gross profit for the three months ended in Mar. 2016 was $7.18 Mil. Mid-Con Energy Partners LP's gross profit for the trailing twelve months (TTM) ended in Mar. 2016 was $57.19 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 Mar. 2016 was $7.18 Mil. Mid-Con Energy Partners LP's revenue for the three months ended in Mar. 2016 was $13.84 Mil. Therefore, Mid-Con Energy Partners LP's Gross Margin for the quarter that ended in Mar. 2016 was 51.89%.

Mid-Con Energy Partners LP had a gross margin of 51.89% for the quarter that ended in Mar. 2016 => Durable competitive advantage

During the past 6 years, the highest Gross Margin of Mid-Con Energy Partners LP was 80.81%. The lowest was 49.23%. And the median was 72.74%.


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 Mar. 2016 is calculated as

Gross Profit (Q: Mar. 2016 )=Revenue - Cost of Goods Sold
=13.837 - 6.657
=7.18

Mid-Con Energy Partners LP Gross Profit for the trailing twelve months (TTM) ended in Mar. 2016 was 3.804 (Jun. 2015 ) + 29.297 (Sep. 2015 ) + 16.91 (Dec. 2015 ) + 7.18 (Mar. 2016 ) = $57.19 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 Mar. 2016 is calculated as

Gross Margin (Q: Mar. 2016 )=Gross Profit (Q: Mar. 2016 ) / Revenue (Q: Mar. 2016 )
=(Revenue - Cost of Goods Sold) / Revenue
=7.18 / 13.837
=51.89 %

* 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 51.89% for the quarter that ended in Mar. 2016 => 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

Dec10Dec11Dec12Dec13Dec14Dec15
Gross_Profit 0.000.000.000.008.6027.9754.3659.8893.8659.20

Mid-Con Energy Partners LP Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
Gross_Profit 16.3813.7111.3626.7642.039.193.8029.3016.917.18
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