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Desert Mountain Energy (TSXV:DME) Gross Margin % : 56.25% (As of Dec. 2023)


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What is Desert Mountain Energy Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Desert Mountain Energy's Gross Profit for the three months ended in Dec. 2023 was C$0.35 Mil. Desert Mountain Energy's Revenue for the three months ended in Dec. 2023 was C$0.62 Mil. Therefore, Desert Mountain Energy's Gross Margin % for the quarter that ended in Dec. 2023 was 56.25%.


The historical rank and industry rank for Desert Mountain Energy's Gross Margin % or its related term are showing as below:

TSXV:DME' s Gross Margin % Range Over the Past 10 Years
Min: 49.6   Med: 52.28   Max: 54.95
Current: 51.38


During the past 13 years, the highest Gross Margin % of Desert Mountain Energy was 54.95%. The lowest was 49.60%. And the median was 52.28%.

TSXV:DME's Gross Margin % is ranked better than
77.43% of 926 companies
in the Oil & Gas industry
Industry Median: 27.845 vs TSXV:DME: 51.38

Desert Mountain Energy had a gross margin of 56.25% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Desert Mountain Energy was 0.00% per year.


Desert Mountain Energy Gross Margin % Historical Data

The historical data trend for Desert Mountain Energy'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.

Desert Mountain Energy Gross Margin % Chart

Desert Mountain Energy Annual Data
Trend Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only - - - 54.95 49.60

Desert Mountain Energy 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 51.05 61.19 50.19 33.13 56.25

Competitive Comparison of Desert Mountain Energy's Gross Margin %

For the Oil & Gas E&P subindustry, Desert Mountain Energy'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.


Desert Mountain Energy's Gross Margin % Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Desert Mountain Energy's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Desert Mountain Energy's Gross Margin % falls into.



Desert Mountain Energy Gross Margin % Calculation

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

Desert Mountain Energy's Gross Margin for the fiscal year that ended in Sep. 2023 is calculated as

Gross Margin % (A: Sep. 2023 )=Gross Profit (A: Sep. 2023 ) / Revenue (A: Sep. 2023 )
=0.9 / 1.744
=(Revenue - Cost of Goods Sold) / Revenue
=(1.744 - 0.879) / 1.744
=49.60 %

Desert Mountain Energy'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 )
=0.4 / 0.624
=(Revenue - Cost of Goods Sold) / Revenue
=(0.624 - 0.273) / 0.624
=56.25 %

* 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.


Desert Mountain Energy  (TSXV:DME) 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

Desert Mountain Energy had a gross margin of 56.25% for the quarter that ended in Dec. 2023 => 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.


Desert Mountain Energy Gross Margin % Related Terms

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


Desert Mountain Energy (TSXV:DME) Business Description

Traded in Other Exchanges
Address
750 West Pender Street, Suite 250, Vancouver, BC, CAN, V6C 2T7
Desert Mountain Energy Corp is a forward-looking resource company actively engaged in the exploration and development of Helium and Rare Earth Gas properties in the U.S. Southwest. The company's projects include Holbrook Helium Project and the Noble gas project.

Desert Mountain Energy (TSXV:DME) Headlines

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