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Mid-Con Energy Partners LP (NAS:MCEP)
Gross Profit
$82.3 Mil (TTM As of Sep. 2015)

Mid-Con Energy Partners LP's gross profit for the three months ended in Sep. 2015 was $29.5 Mil. Mid-Con Energy Partners LP's gross profit for the trailing twelve months (TTM) ended in Sep. 2015 was $82.3 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 Sep. 2015 was $29.5 Mil. Mid-Con Energy Partners LP's revenue for the three months ended in Sep. 2015 was $38.3 Mil. Therefore, Mid-Con Energy Partners LP's Gross Margin for the quarter that ended in Sep. 2015 was 77.10%.

Mid-Con Energy Partners LP had a gross margin of 77.10% for the quarter that ended in Sep. 2015 => 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 Sep. 2015 is calculated as

Gross Profit (Q: Sep. 2015 )=Revenue - Cost of Goods Sold
=38.264 - 8.761
=29.5

Mid-Con Energy Partners LP Gross Profit for the trailing twelve months (TTM) ended in Sep. 2015 was 37.336 (Dec. 2014 ) + 10.3 (Mar. 2015 ) + 5.123 (Jun. 2015 ) + 29.503 (Sep. 2015 ) = $82.3 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 Sep. 2015 is calculated as

Gross Margin (Q: Sep. 2015 )=Gross Profit (Q: Sep. 2015 ) / Revenue (Q: Sep. 2015 )
=(Revenue - Cost of Goods Sold) / Revenue
=29.5 / 38.264
=77.10 %

* 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 77.10% for the quarter that ended in Sep. 2015 => 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 0.00.00.00.00.09.028.154.459.993.9

Mid-Con Energy Partners LP Quarterly Data

Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15
Gross_Profit 18.210.416.415.112.828.637.310.35.129.5
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