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Magellan Midstream Partners LP Gross Margin %

: 56.75% (As of Jun. 2022)
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Gross Margin % is calculated as gross profit divided by its revenue. Magellan Midstream Partners LP's Gross Profit for the three months ended in Jun. 2022 was $448 Mil. Magellan Midstream Partners LP's Revenue for the three months ended in Jun. 2022 was $789 Mil. Therefore, Magellan Midstream Partners LP's Gross Margin % for the quarter that ended in Jun. 2022 was 56.75%.


The historical rank and industry rank for Magellan Midstream Partners LP's Gross Margin % or its related term are showing as below:

MMP' s Gross Margin % Range Over the Past 10 Years
Min: 55.69   Med: 67.39   Max: 71.94
Current: 58.77


During the past 13 years, the highest Gross Margin % of Magellan Midstream Partners LP was 71.94%. The lowest was 55.69%. And the median was 67.39%.

MMP's Gross Margin % is ranked better than
77.05% of 937 companies
in the Oil & Gas industry
Industry Median: 27.67 vs MMP: 58.77

Magellan Midstream Partners LP had a gross margin of 56.75% for the quarter that ended in Jun. 2022 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Magellan Midstream Partners LP was -0.90% per year.


Magellan Midstream Partners LP Gross Margin % Historical Data

The historical data trend for Magellan Midstream Partners LP'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.

Magellan Midstream Partners LP Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Gross Margin %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 66.81 65.70 69.56 69.37 63.12

Magellan Midstream Partners LP Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Gross Margin % 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 Premium Member Only Premium Member Only Premium Member Only 65.71 67.57 56.63 55.37 56.75

Competitive Comparison

For the Oil & Gas Midstream subindustry, Magellan Midstream Partners LP'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.

   

Magellan Midstream Partners LP Gross Margin % Distribution

For the Oil & Gas industry and Energy sector, Magellan Midstream Partners LP's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Magellan Midstream Partners LP's Gross Margin % falls into.



Magellan Midstream Partners LP Gross Margin % Calculation

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

Magellan Midstream Partners LP's Gross Margin for the fiscal year that ended in Dec. 2021 is calculated as

Gross Margin % (A: Dec. 2021 )=Gross Profit (A: Dec. 2021 ) / Revenue (A: Dec. 2021 )
=1725.2 / 2733.1
=(Revenue - Cost of Goods Sold) / Revenue
=(2733.1 - 1007.9) / 2733.1
=63.12 %

Magellan Midstream Partners LP's Gross Margin for the quarter that ended in Jun. 2022 is calculated as


Gross Margin % (Q: Jun. 2022 )=Gross Profit (Q: Jun. 2022 ) / Revenue (Q: Jun. 2022 )
=447.5 / 788.6
=(Revenue - Cost of Goods Sold) / Revenue
=(788.6 - 341.1) / 788.6
=56.75 %

* 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.


Magellan Midstream Partners LP  (NYSE:MMP) 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

Magellan Midstream Partners LP had a gross margin of 56.75% for the quarter that ended in Jun. 2022 => 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.


Magellan Midstream Partners LP Gross Margin % Related Terms

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


Magellan Midstream Partners LP Business Description

Magellan Midstream Partners LP logo
Traded in Other Exchanges
N/A
Address
One Williams Center, P.O. Box 22186, Tulsa, OK, USA, 74121-2186
Magellan Midstream Partners is a master limited partnership that operates pipelines and storage terminals in the Central and Eastern United States. Its assets transport, store, and distribute refined petroleum products and crude and earn a fee-based stream of cash flows. Assets include the country's longest petroleum pipeline network and several crude oil pipelines. Refined products make about 70% of operating margin, with the remainder mainly crude-oil pipelines.
Executives
Somasundaram Sivasankaran director C/O APERGY CORPORATION 2445 TECHNOLOGY FOREST BLVD, BLD 4, FL 9 THE WOODLANDS TX 77381
Roles Mark B officer: Senior Vice President ONE WILLIAMS CENTER SUITE 2800 TULSA OK 74172
Pearson Michael C officer: Senior Vice President ONE WILLIAMS CENTER SUITE 2800 TULSA OK 74172
Joung Chansoo director C/O WARBURG PINCUS LLC 450 LEXINGTON AVENUE NEW YORK NY 10017
Holman Jeffrey L officer: Senior Vice President & CFO ONE WILLIAMS CENTER TULSA OK 74172
Little Melanie A officer: Senior Vice President ONE WILLIAMS CENTER, SUITE 2800 TULSA OK 74172
Guay Edward J director ONE WILLIAMS CENTER, SUITE 2800 TULSA OK 74172
Gobillot Lori director 5103 CITY WEST BLVD. 4TH FLOOR HOUSTON TX 77042
Aaronson Michael officer: Senior Vice President 16666 NORTHCHASE DRIVE HOUSTON TX 77060
Milford Aaron L officer: Senior Vice President & CFO ONE WILLIAMS CENTER TULSA OK 74172
Methvin Stacy P. director 777 HIDDEN RIDGE IRVING TX 75038
Barnes Robert L officer: Senior Vice President ONE WILLIAMS CENTER SUITE 2800 TULSA OK 74172
Osborne Michael P officer: Senior VP & CFO ONE WILLIAMS CENTER SUITE 2800 TULSA OK 74172
May Douglas J officer: Senior Vice President ONE WILLIAMS CENTER, SUITE 4100 TULSA OK 74172
Davied Larry J officer: Senior Vice President ONE WILLIAMS CENTER SUITE 2800 TULSA OK 74172

Magellan Midstream Partners LP Headlines

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