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Mid-Con Energy Partners LP (NAS:MCEP)
Gross Profit
$23.82 Mil (TTM As of Mar. 2017)

Mid-Con Energy Partners LP's gross profit for the three months ended in Mar. 2017 was $12.69 Mil. Mid-Con Energy Partners LP's gross profit for the trailing twelve months (TTM) ended in Mar. 2017 was $23.82 Mil.

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 Mar. 2017 was $12.69 Mil. Mid-Con Energy Partners LP's revenue for the three months ended in Mar. 2017 was $18.48 Mil. Therefore, Mid-Con Energy Partners LP's Gross Margin for the quarter that ended in Mar. 2017 was 68.65%.

Mid-Con Energy Partners LP had a gross margin of 68.65% for the quarter that ended in Mar. 2017 => Durable competitive advantage

During the past 7 years, the highest Gross Margin of Mid-Con Energy Partners LP was 80.81%. The lowest was 41.71%. And the median was 71.58%.


Definition

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

Mid-Con Energy Partners LP's Gross Profit for the fiscal year that ended in Dec. 2016 is calculated as

Gross Profit (A: Dec. 2016 )=Revenue - Cost of Goods Sold
=43.896 - 25.585
=18.31

Mid-Con Energy Partners LP's Gross Profit for the quarter that ended in Mar. 2017 is calculated as

Gross Profit (Q: Mar. 2017 )=Revenue - Cost of Goods Sold
=18.483 - 5.794
=12.69

Mid-Con Energy Partners LP Gross Profit for the trailing twelve months (TTM) ended in Mar. 2017 was -1.82 (Jun. 2016 ) + 7.504 (Sep. 2016 ) + 5.447 (Dec. 2016 ) + 12.689 (Mar. 2017 ) = $23.82 Mil.

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

Mid-Con Energy Partners LP's Gross Margin for the quarter that ended in Mar. 2017 is calculated as

Gross Margin (Q: Mar. 2017 )=Gross Profit (Q: Mar. 2017 ) / Revenue (Q: Mar. 2017 )
=(Revenue - Cost of Goods Sold) / Revenue
=12.69 / 18.483
=68.65 %

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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 68.65% for the quarter that ended in Mar. 2017 => Durable competitive advantage


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 local exchange's currency.

Mid-Con Energy Partners LP Annual Data

Dec10Dec11Dec12Dec13Dec14Dec15Dec16
Gross_Profit 0.000.000.009.0028.1454.3659.8893.8659.2018.31

Mid-Con Energy Partners LP Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
Gross_Profit 42.039.193.8029.3016.917.18-1.827.505.4512.69
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