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United States Lime & Minerals, Inc. (NAS:USLM)
Gross Margin
21.37% (As of Dec. 2013)

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. 2013 was $6.4 Mil. United States Lime & Minerals, Inc.'s revenue for the three months ended in Dec. 2013 was $30.1 Mil. Therefore, United States Lime & Minerals, Inc.'s Gross Margin for the quarter that ended in Dec. 2013 was 21.37%.

USLM' s 10-Year Gross Margin Range
Min: 20.77   Max: 43
Current: 23.03

20.77
43

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%.

USLM's Gross Marginis ranked lower than
100% of the Companies
in the Global Building Materials industry.

( Industry Median: vs. USLM: 23.03 )

United States Lime & Minerals, Inc. had a gross margin of 21.37% for the quarter that ended in Dec. 2013 => Competition eroding margins

The 3-Year average Growth Rate of Gross Margin for United States Lime & Minerals, Inc. was 0.70% per year.


Definition

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

United States Lime & Minerals, Inc.'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 )
=30.8 / 133.765
=(Revenue - Cost of Goods Sold) / Revenue
=(133.765 - 102.965) / 133.765
=23.03 %

United States Lime & Minerals, Inc.'s Gross Margin for the quarter that ended in Dec. 2013 is calculated as

Gross Margin (Q: Dec. 2013 )=Gross Profit (Q: Dec. 2013 ) / Revenue (Q: Dec. 2013 )
=6.4 / 30.109
=(Revenue - Cost of Goods Sold) / Revenue
=(30.109 - 23.674) / 30.109
=21.37 %

* 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 21.37% for the quarter that ended in Dec. 2013 => Competition eroding margins


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.

United States Lime & Minerals, Inc. Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Gross Margin 23.8923.8823.6220.7721.9824.5127.1829.0024.1423.03

United States Lime & Minerals, Inc. Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
Gross Margin 32.0026.8635.4533.0322.7425.4831.4835.7224.6921.37
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