Switch to:
United States Lime & Minerals Inc (NAS:USLM)
Gross Profit
$35.3 Mil (TTM As of Sep. 2014)

United States Lime & Minerals Inc's gross profit for the three months ended in Sep. 2014 was $9.9 Mil. United States Lime & Minerals Inc's gross profit for the trailing twelve months (TTM) ended in Sep. 2014 was $35.3 Mil.

Gross Margin is calculated as gross profit divided by its revenue. United States Lime & Minerals Inc's gross profit for the three months ended in Sep. 2014 was $9.9 Mil. United States Lime & Minerals Inc's revenue for the three months ended in Sep. 2014 was $39.1 Mil. Therefore, United States Lime & Minerals Inc's Gross Margin for the quarter that ended in Sep. 2014 was 25.29%.

United States Lime & Minerals Inc had a gross margin of 25.29% for the quarter that ended in Sep. 2014 => Competition eroding margins

During the past 13 years, the highest Gross Margin of United States Lime & Minerals Inc was 43.00%. The lowest was 20.77%. And the median was 28.09%.


Definition

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

United States Lime & Minerals Inc'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
=133.765 - 102.965
=30.8

United States Lime & Minerals Inc's Gross Profit for the quarter that ended in Sep. 2014 is calculated as

Gross Profit (Q: Sep. 2014 )=Revenue - Cost of Goods Sold
=39.073 - 29.19
=9.9

United States Lime & Minerals Inc Gross Profit for the trailing twelve months (TTM) ended in Sep. 2014 was 6.435 (Dec. 2013 ) + 8.592 (Mar. 2014 ) + 10.423 (Jun. 2014 ) + 9.883 (Sep. 2014 ) = $35.3 Mil.

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

United States Lime & Minerals Inc's Gross Margin for the quarter that ended in Sep. 2014 is calculated as

Gross Margin (Q: Sep. 2014 )=Gross Profit (Q: Sep. 2014 ) / Revenue (Q: Sep. 2014 )
=(Revenue - Cost of Goods Sold) / Revenue
=9.9 / 39.073
=25.29 %

* 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

United States Lime & Minerals Inc had a gross margin of 25.29% for the quarter that ended in Sep. 2014 => Competition eroding margins


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.

United States Lime & Minerals Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Gross_Profit 17.019.428.026.031.328.836.041.333.430.8

United States Lime & Minerals Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
Gross_Profit 8.47.88.16.39.09.16.48.610.49.9
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK