The historical rank and industry rank for Callon Petroleum Co's Gross Margin % or its related term are showing as below:
CPE'
s Gross Margin % Range Over the Past 10 Years
Min: 16.14 Med: 43.08 Max: 52.96
Current: 37.69
During the past 13 years, the highestGross Margin % of Callon Petroleum Co was 52.96%. The lowest was 16.14%. And the median was 43.08%.
CPE's Gross Margin % is not ranked
in the Oil & Gas industry.
Industry Median: 27.905
vs CPE: 37.69
Callon Petroleum Co had a gross margin of 35.46% for the quarter that ended in Dec. 2023 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Callon Petroleum Co was 0.60% per year.
Callon Petroleum Co Gross Margin % Historical Data
The historical data trend for Callon Petroleum Co'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 Callon Petroleum Co's Gross Margin %
For the Oil & Gas E&P subindustry, Callon Petroleum Co'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.
Callon Petroleum Co's Gross Margin % Distribution in the Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Callon Petroleum Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Callon Petroleum Co'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.
Callon Petroleum Co (NYSE:CPE) 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
Callon Petroleum Co had a gross margin of 35.46% for the quarter that ended in Dec. 2023 => Competition eroding margins
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.
Callon Petroleum Co Gross Margin % Related Terms
Thank you for viewing the detailed overview of Callon Petroleum Co's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Callon Petroleum Co (Callon Petroleum Co) Business Description
Callon Petroleum Company engages in the exploration, development, acquisition, and production of oil and natural gas. Activities are primarily conducted in the Permian Basin region of West Texas and southeastern New Mexico. Callon relies heavily on the latest horizontal production techniques to extract hydrocarbon products from its assets, with crude oil accounting for over half of production. Historically, a handful of marketing and trading companies have accounted for the majority of the sales for Callon's oil and gas production. Assets are acquired through the drilling of emerging zones on existing acreage but also by acquiring additional locations through leasehold purchases, leasing programs, joint ventures, and asset swaps.
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