Valiant Petroleum (LSE:VPP) Gross Profit : £82.7 Mil (TTM As of Jun. 2012)

Valiant Petroleum Gross Profit Chart

Competitive Comparison of Valiant Petroleum's Gross Profit

For the Oil & Gas E&P subindustry, Valiant Petroleum's Gross Profit, along with its competitors' market caps and Gross Profit 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.

Valiant Petroleum's Gross Profit Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Valiant Petroleum's Gross Profit distribution charts can be found below:

* The bar in red indicates where Valiant Petroleum's Gross Profit falls into.

Valiant Petroleum Gross Profit Calculation

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

Valiant Petroleum's Gross Profit for the fiscal year that ended in Dec. 2011 is calculated as

Valiant Petroleum's Gross Profit for the quarter that ended in Jun. 2012 is calculated as

Gross Profit for the trailing twelve months (TTM) ended in Jun. 2012 adds up the semi-annually data reported by the company within the most recent 12 months, which was £82.7 Mil.

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

Valiant Petroleum's Gross Margin % for the quarter that ended in Jun. 2012 is calculated as

* 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.

Valiant Petroleum  (LSE:VPP) Gross Profit 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

Valiant Petroleum had a gross margin of 51.33% for the quarter that ended in Jun. 2012 => Durable competitive advantage

Valiant Petroleum Gross Profit Related Terms

Thank you for viewing the detailed overview of Valiant Petroleum's Gross Profit provided by GuruFocus.com. Please click on the following links to see related term pages.

Valiant Petroleum (LSE:VPP) Business Description