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The Reserve Petroleum Co (The Reserve Petroleum Co) Gross Margin % : -37.25% (As of Dec. 2023)


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What is The Reserve Petroleum Co Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. The Reserve Petroleum Co's Gross Profit for the three months ended in Dec. 2023 was $-1.55 Mil. The Reserve Petroleum Co's Revenue for the three months ended in Dec. 2023 was $4.16 Mil. Therefore, The Reserve Petroleum Co's Gross Margin % for the quarter that ended in Dec. 2023 was -37.25%.


The historical rank and industry rank for The Reserve Petroleum Co's Gross Margin % or its related term are showing as below:

RSRV' s Gross Margin % Range Over the Past 10 Years
Min: -29.27   Med: 27.1   Max: 55.06
Current: 15


During the past 13 years, the highest Gross Margin % of The Reserve Petroleum Co was 55.06%. The lowest was -29.27%. And the median was 27.10%.

RSRV's Gross Margin % is ranked worse than
67.82% of 926 companies
in the Oil & Gas industry
Industry Median: 27.875 vs RSRV: 15.00

The Reserve Petroleum Co had a gross margin of -37.25% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for The Reserve Petroleum Co was 0.00% per year.


The Reserve Petroleum Co Gross Margin % Historical Data

The historical data trend for The Reserve Petroleum Co's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

The Reserve Petroleum Co Gross Margin % Chart

The Reserve Petroleum Co Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 21.51 -29.27 36.11 54.55 15.14

The Reserve Petroleum Co Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 22.94 29.77 45.44 40.88 -37.25

Competitive Comparison of The Reserve Petroleum Co's Gross Margin %

For the Oil & Gas E&P subindustry, The Reserve Petroleum Co's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


The Reserve Petroleum Co's Gross Margin % Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, The Reserve Petroleum Co's Gross Margin % distribution charts can be found below:

* The bar in red indicates where The Reserve Petroleum Co's Gross Margin % falls into.



The Reserve Petroleum Co Gross Margin % Calculation

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

The Reserve Petroleum Co's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )=Gross Profit (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=2 / 13.376
=(Revenue - Cost of Goods Sold) / Revenue
=(13.376 - 11.351) / 13.376
=15.14 %

The Reserve Petroleum Co's Gross Margin for the quarter that ended in Dec. 2023 is calculated as


Gross Margin % (Q: Dec. 2023 )=Gross Profit (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=-1.5 / 4.156
=(Revenue - Cost of Goods Sold) / Revenue
=(4.156 - 5.704) / 4.156
=-37.25 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange 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.


The Reserve Petroleum Co  (OTCPK:RSRV) Gross Margin % 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

The Reserve Petroleum Co had a gross margin of -37.25% for the quarter that ended in Dec. 2023 => No sustainable 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.


The Reserve Petroleum Co Gross Margin % Related Terms

Thank you for viewing the detailed overview of The Reserve Petroleum Co's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


The Reserve Petroleum Co (The Reserve Petroleum Co) Business Description

Traded in Other Exchanges
N/A
Address
6801 Broadway Extension, Suite 300, Oklahoma City, OK, USA, 73116-9037
The Reserve Petroleum Co is engaged in managing its owned mineral properties and exploration and development of oil and natural gas properties. It operates through the segment of the oil and natural gas exploration and development and minerals management with areas of concentration in Texas, Oklahoma, Kansas, Arkansas, and South Dakota.
Executives
Cameron R Mclain director, officer: PRESIDENT 805 GLEN EAGLES DR, EDMOND OK 73013
Lawrence Raymond Francis officer: 1st VP & Secretary/Treasurer 6801 BROADWAY EXTENSION, SUITE 300, OKLAHOMA CITY OK 73116
John Mclain director 6801 BROADWAY EXTENSION, SUITE 200, OKLAHOMA CITY OK 73116-9037
Robert T Mclain director 6403 N. GRAND BLVD, SUITE 200, OKLAHOMA CITY OK 73116
Robert L Savage director 8326 GLENWOOD AVENUE, OKLAHOMA CITY OK 73114
James L Tyler director, officer: 2nd Vice President, Sec/Treas 7720 NW 102ND ST, OKLAHOMA CITY OK 73162-5314
Kyle L Mclain other: Performs policy making functio 2301 STEEPLECHASE RD, EDMOND OK 73034
Mason W Mclain director, 10 percent owner, officer: President

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