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Mid-Con Energy Partners LP (NAS:MCEP)
Gross Margin
75.48% (As of Sep. 2014)

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. 2014 was $26.76 Mil. Mid-Con Energy Partners LP's revenue for the three months ended in Sep. 2014 was $35.45 Mil. Therefore, Mid-Con Energy Partners LP's Gross Margin for the quarter that ended in Sep. 2014 was 75.48%.

MCEP' s 10-Year Gross Margin Range
Min: 51.49   Max: 80.81
Current: 70.54

51.49
80.81

During the past 4 years, the highest Gross Margin of Mid-Con Energy Partners LP was 80.81%. The lowest was 51.49%. And the median was 73.19%.

MCEP's Gross Marginis ranked lower than
100% of the Companies
in the Global Oil & Gas E&P industry.

( Industry Median: vs. MCEP: 70.54 )

Mid-Con Energy Partners LP had a gross margin of 75.48% for the quarter that ended in Sep. 2014 => Durable competitive advantage

The 3-Year average Growth Rate of Gross Margin for Mid-Con Energy Partners LP was 0.00% per year.


Definition

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Mid-Con Energy Partners LP's Gross Margin for the fiscal year that ended in Dec. 2013 is calculated as

Gross Margin (A: Dec. 2013 )=Gross Profit (A: Dec. 2013 ) / Revenue (A: Dec. 2013 )
=59.9 / 80.061
=(Revenue - Cost of Goods Sold) / Revenue
=(80.061 - 20.183) / 80.061
=74.79 %

Mid-Con Energy Partners LP'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 )
=26.8 / 35.453
=(Revenue - Cost of Goods Sold) / Revenue
=(35.453 - 8.694) / 35.453
=75.48 %

* 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 75.48% for the quarter that ended in Sep. 2014 => Durable competitive advantage


Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin and Operating Margin closely helps avoid value trap situations.


Related Terms

Operating Margin, Cost of Goods Sold, Gross Profit, 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

Dec10Dec11Dec12Dec13
Gross Margin 0.000.000.000.000.000.0051.4971.5880.8174.79

Mid-Con Energy Partners LP Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
Gross Margin 90.3668.3075.3478.3079.7364.3374.3469.4058.4075.48
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