Independence Contract Drilling (Independence Contract Drilling) Gross Margin % : 7.21% (As of Dec. 2023)

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What is Independence Contract Drilling Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Independence Contract Drilling's Gross Profit for the three months ended in Dec. 2023 was $3.3 Mil. Independence Contract Drilling's Revenue for the three months ended in Dec. 2023 was $45.8 Mil. Therefore, Independence Contract Drilling's Gross Margin % for the quarter that ended in Dec. 2023 was 7.21%.

The historical rank and industry rank for Independence Contract Drilling's Gross Margin % or its related term are showing as below:

ICD' s Gross Margin % Range Over the Past 10 Years
Min: -31.01 Med: 9.06 Max: 17.28
Current: 17.28

During the past 12 years, the highest Gross Margin % of Independence Contract Drilling was 17.28%. The lowest was -31.01%. And the median was 9.06%.

ICD's Gross Margin % is ranked worse than
63.35% of 925 companies
in the Oil & Gas industry
Industry Median: 27.82 vs ICD: 17.28

Independence Contract Drilling had a gross margin of 7.21% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Independence Contract Drilling was 0.00% per year.

Independence Contract Drilling Gross Margin % Historical Data

The historical data trend for Independence Contract Drilling'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.

Independence Contract Drilling Gross Margin % Chart

Independence Contract Drilling Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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6.54

-31.01

-30.37

12.25

17.28

Independence Contract Drilling 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															22.54	24.22	19.74	14.58	7.21

Competitive Comparison of Independence Contract Drilling's Gross Margin %

For the Oil & Gas Drilling subindustry, Independence Contract Drilling'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.

Independence Contract Drilling's Gross Margin % Distribution in the Oil & Gas Industry

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

* The bar in red indicates where Independence Contract Drilling's Gross Margin % falls into.

Independence Contract Drilling Gross Margin % Calculation

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

Independence Contract Drilling's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )	=	Gross Profit (A: Dec. 2023 )	/	Revenue (A: Dec. 2023 )
	=	36.3	/	210.106
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(210.106 - 173.796)	/	210.106
	=	17.28 %

Independence Contract Drilling'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 )
	=	3.3	/	45.83
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(45.83 - 42.527)	/	45.83
	=	7.21 %

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.

Independence Contract Drilling (NYSE:ICD) 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

Independence Contract Drilling had a gross margin of 7.21% for the quarter that ended in Dec. 2023 => No sustainable 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.

Independence Contract Drilling Gross Margin % Related Terms

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Independence Contract Drilling (Independence Contract Drilling) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Independence Contract Drilling Inc (NYSE:ICD) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

20475 State Highway 249, Suite 300, Houston, TX, USA, 77070

Website

https://www.icdrilling.com

Independence Contract Drilling Inc is engaged in providing land-based contract drilling services for oil and natural gas producers. The company constructs its own and operates a premium land rig fleet. It develops and assembles its ShaleDriller series rig which is used for the development of oil and gas properties. The company's customers for contract drilling services in the United States include oil and natural gas companies, independent oil and natural gas companies, as well as various small to mid-sized publicly traded and privately held oil and gas companies.

Executives

Brian Berman	director	20475 STATE HIGHWAY 249, SUITE 300, HOUSTON TX 77070
Msd Capital L P	10 percent owner	1 VANDERBILT AVENUE, 26TH FLOOR, NEW YORK NY 10017-5407
Msd Credit Opportunity Master Fund, L.p.	director, 10 percent owner	ONE VANDERBILT AVENUE, 26TH FLOOR, NEW YORK NY 10017
Msd Pcof Partners Lxxiii, Llc	director, 10 percent owner	ONE VANDERBILT AVENUE, 26TH FLOOR, NEW YORK NY 10017
Msd Private Credit Opportunity (non-eci) Fund, Llc	director, 10 percent owner	ONE VANDERBILT AVENUE, 26TH FLOOR, NEW YORK NY 10017
Michael S Dell	10 percent owner	C/O DELL INC., ONE DELL WAY, ROUND ROCK TX 78682-2244
Msd Energy Investments, L.p.	10 percent owner	ONE VANDERBILT AVENUE, 26TH FLOOR, NEW YORK NY 10017
Msd Partners, L.p.	director, 10 percent owner	ONE VANDERBILT AVENUE, 26TH FLOOR, NEW YORK NY 10017
William Monroe	10 percent owner	C/O HIGIER ALLEN & LAUTIN, P.C., 2711 N. HASKELL AVE., SUITE 2400, DALLAS TX 75204
James Minmier	director	777 N.W. 63RD ST., OKLAHOMA CITY OK 73116
Daniel F Mcnease	director	2800 POST OAK BLVD, STE 5450, HOUSTON TX 77056-6127
Barrett Robert J. Iv	director	20475 STATE HIGHWAY 249, SUITE 300, HOUSTON TX 77070
Vincent J Cebula	director	1301 AVENUE OF THE AMERICAS, 34 TH FLOOR, NEW YORK NY 10019
Christopher Gleysteen	director	ONE VANDERBILT AVENUE, 26TH FLOOR, NEW YORK NY 10017
Scott A. Keller	officer: SVP - SALES AND MARKETING	20475 SH 249, SUITE 300, HOUSTON TX 77070