Paramount Resources (TSX:POU) Gross Margin % : 49.13% (As of Dec. 2023)

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What is Paramount Resources Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Paramount Resources's Gross Profit for the three months ended in Dec. 2023 was C$256 Mil. Paramount Resources's Revenue for the three months ended in Dec. 2023 was C$521 Mil. Therefore, Paramount Resources's Gross Margin % for the quarter that ended in Dec. 2023 was 49.13%.

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

TSX:POU' s Gross Margin % Range Over the Past 10 Years
Min: -15.78 Med: 36.15 Max: 57.94
Current: 50.3

During the past 13 years, the highest Gross Margin % of Paramount Resources was 57.94%. The lowest was -15.78%. And the median was 36.15%.

TSX:POU's Gross Margin % is ranked better than
75.89% of 925 companies
in the Oil & Gas industry
Industry Median: 27.87 vs TSX:POU: 50.30

Paramount Resources had a gross margin of 49.13% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Paramount Resources was 9.80% per year.

Paramount Resources Gross Margin % Historical Data

The historical data trend for Paramount Resources'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.

Paramount Resources Gross Margin % Chart

Paramount Resources Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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42.86

38.26

57.64

57.94

50.29

Paramount Resources 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															55.35	47.62	51.72	53.51	49.13

Competitive Comparison of Paramount Resources's Gross Margin %

For the Oil & Gas E&P subindustry, Paramount Resources'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.

Paramount Resources's Gross Margin % Distribution in the Oil & Gas Industry

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

* The bar in red indicates where Paramount Resources's Gross Margin % falls into.

Paramount Resources Gross Margin % Calculation

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

Paramount Resources'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 )
	=	1032.7	/	2053.6
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(2053.6 - 1020.9)	/	2053.6
	=	50.29 %

Paramount Resources'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 )
	=	255.8	/	520.7
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(520.7 - 264.9)	/	520.7
	=	49.13 %

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.

Paramount Resources (TSX:POU) 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

Paramount Resources had a gross margin of 49.13% 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.

Paramount Resources Gross Margin % Related Terms

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Paramount Resources (TSX:POU) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Paramount Resources Ltd (TSX:POU) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

PRMRF:USA PQ51:Germany

Address

888 - 3rd Street SW, Suite 4700, Calgary, AB, CAN, T2P 5C5

Website

https://www.paramountres.com

Paramount Resources Ltd is a Canadian energy company that explores, develops, produces, and markets natural gas, crude oil, and natural gas liquids. The company takes part in exploration and production in Alberta and British Columbia. Sales for Paramount's products are priced in a multitude of markets that span the United States and Canada. Depending on the product, contracts can have daily, monthly, or long-term agreements. Assets for exploration and production are acquired by way of royalties that are paid to provincial governments and freehold landowners.

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