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Santa Fe Petroleum Inc  (OTCPK:SFPI) Gross Profit: $0.01 Mil (TTM As of Sep. 2013)

Santa Fe Petroleum Inc's gross profit for the three months ended in Sep. 2013 was $0.01 Mil. Santa Fe Petroleum Inc's gross profit for the trailing twelve months (TTM) ended in Sep. 2013 was $0.01 Mil.

Gross Margin % is calculated as gross profit divided by its revenue. Santa Fe Petroleum Inc's gross profit for the three months ended in Sep. 2013 was $0.01 Mil. Santa Fe Petroleum Inc's Revenue for the three months ended in Sep. 2013 was $0.01 Mil. Therefore, Santa Fe Petroleum Inc's Gross Margin % for the quarter that ended in Sep. 2013 was 100.00%.

Santa Fe Petroleum Inc had a gross margin of 100.00% for the quarter that ended in Sep. 2013 => Durable competitive advantage


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

Santa Fe Petroleum Inc Annual Data

Dec10 Dec11 Dec12
Gross Profit 0.00 0.00 -0.01

Santa Fe Petroleum Inc Quarterly Data

Dec10 Mar11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13
Gross Profit Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.00 -0.01 0.00 0.00 0.01

Competitive Comparison
* 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.


Calculation

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

Santa Fe Petroleum Inc's Gross Profit for the fiscal year that ended in Dec. 2012 is calculated as

Gross Profit (A: Dec. 2012 )=Revenue - Cost of Goods Sold
=0 - 0.008
=-0.01

Santa Fe Petroleum Inc's Gross Profit for the quarter that ended in Sep. 2013 is calculated as

Gross Profit (Q: Sep. 2013 )=Revenue - Cost of Goods Sold
=0.01 - 0
=0.01

Gross Profit for the trailing twelve months (TTM) ended in Sep. 2013 was -0.008 (Dec. 2012 ) + 0 (Mar. 2013 ) + 0.003 (Jun. 2013 ) + 0.01 (Sep. 2013 ) = $0.01 Mil.

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

Santa Fe Petroleum Inc's Gross Margin % for the quarter that ended in Sep. 2013 is calculated as

Gross Margin % (Q: Sep. 2013 )=Gross Profit (Q: Sep. 2013 ) / Revenue (Q: Sep. 2013 )
=(Revenue - Cost of Goods Sold) / Revenue
=0.01 / 0.01
=100.00 %

* 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

Santa Fe Petroleum Inc had a gross margin of 100.00% for the quarter that ended in Sep. 2013 => Durable competitive advantage


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