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United States Lime & Minerals Inc (NAS:USLM)
Gross Profit
$36.8 Mil (TTM As of Dec. 2014)

United States Lime & Minerals Inc's gross profit for the three months ended in Dec. 2014 was $7.9 Mil. United States Lime & Minerals Inc's gross profit for the trailing twelve months (TTM) ended in Dec. 2014 was $36.8 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 Dec. 2014 was $7.9 Mil. United States Lime & Minerals Inc's revenue for the three months ended in Dec. 2014 was $35.4 Mil. Therefore, United States Lime & Minerals Inc's Gross Margin for the quarter that ended in Dec. 2014 was 22.30%.

United States Lime & Minerals Inc had a gross margin of 22.30% for the quarter that ended in Dec. 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 27.18%.

Warning Sign:

United States Lime & Minerals Inc gross margin has been in long term decline. The average rate of decline per year is -1.9%.


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. 2014 is calculated as

Gross Profit (A: Dec. 2014 )=Revenue - Cost of Goods Sold
=149.841 - 113.05
=36.8

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

Gross Profit (Q: Dec. 2014 )=Revenue - Cost of Goods Sold
=35.401 - 27.508
=7.9

United States Lime & Minerals Inc Gross Profit for the trailing twelve months (TTM) ended in Dec. 2014 was 8.592 (Mar. 2014 ) + 10.423 (Jun. 2014 ) + 9.883 (Sep. 2014 ) + 7.893 (Dec. 2014 ) = $36.8 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 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
=7.9 / 35.401
=22.30 %

* 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 22.30% for the quarter that ended in Dec. 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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
Gross_Profit 19.428.026.031.328.836.041.333.430.836.8

United States Lime & Minerals Inc Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
Gross_Profit 7.88.16.39.09.16.48.610.49.97.9
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