Gross Margin % is calculated as gross profit divided by its revenue. W&T Offshore's Gross Profit for the
three
months ended in Dec. 2023 was $92.1 Mil. W&T Offshore's Revenue for the
three
months ended in Dec. 2023 was $132.3 Mil. Therefore, W&T Offshore's Gross Margin % for the quarter that ended in Dec. 2023 was 69.56%.
The historical rank and industry rank for W&T Offshore's Gross Margin % or its related term are showing as below:
WTI'
s Gross Margin % Range Over the Past 10 Years
Min: 22.42 Med: 68.78 Max: 84.55
Current: 73.54
During the past 13 years, the highestGross Margin % of W&T Offshore was 84.55%. The lowest was 22.42%. And the median was 68.78%.
WTI's Gross Margin % is ranked better than 91.35% of 925
companies
in the Oil & Gas industry
Industry Median: 27.87
vs WTI: 73.54
W&T Offshore had a gross margin of 69.56% for the quarter that ended in Dec. 2023 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for W&T Offshore was 2.20% per year.
W&T Offshore Gross Margin % Historical Data
The historical data trend for W&T Offshore'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.
Competitive Comparison of W&T Offshore's Gross Margin %
For the Oil & Gas E&P subindustry, W&T Offshore'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.
W&T Offshore's Gross Margin % Distribution in the Oil & Gas Industry
For the Oil & Gas industry and Energy sector, W&T Offshore's Gross Margin % distribution charts can be found below:
* The bar in red indicates where W&T Offshore's Gross Margin % falls into.
* 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.
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
W&T Offshore had a gross margin of 69.56% 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.
W&T Offshore Gross Margin % Related Terms
Thank you for viewing the detailed overview of W&T Offshore's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
W&T Offshore Inc is an oil and gas exploration and production company. The company's exploration operations are focused in the Gulf of Mexico, where it drills for oil and gas. The company engages in both deepwater drilling and shallow-water shelf drilling. W&T Offshore extracts crude oil, natural gas, and natural gas liquids, which are then sold directly at the wellhead. Overall, crude oil accounts for the majority of the company's revenue, with natural gas accounting for a much smaller portion.
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