Linc Energy (ASX:LNC) Gross Margin % : -192.66% (As of Dec. 2015)

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What is Linc Energy Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Linc Energy's Gross Profit for the three months ended in Dec. 2015 was A$-30.51 Mil. Linc Energy's Revenue for the three months ended in Dec. 2015 was A$15.83 Mil. Therefore, Linc Energy's Gross Margin % for the quarter that ended in Dec. 2015 was -192.66%.

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

ASX:LNC' s Gross Margin % Range Over the Past 10 Years
Min: -192.66 Med: 15.59 Max: 100
Current: -192.66

During the past 11 years, the highest Gross Margin % of Linc Energy was 100.00%. The lowest was -192.66%. And the median was 15.59%.

ASX:LNC's Gross Margin % is not ranked
in the Oil & Gas industry.
Industry Median: 28 vs ASX:LNC: -192.66

Linc Energy had a gross margin of -192.66% for the quarter that ended in Dec. 2015 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Linc Energy was 0.00% per year.

Linc Energy Gross Margin % Historical Data

The historical data trend for Linc Energy'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.

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Linc Energy Gross Margin % Chart

Linc Energy Annual Data

Trend

Jun06

Jun07

Jun08

Jun09

Jun10

Jun11

Jun12

Jun13

Jun14

Jun15

Gross Margin %

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6.47

44.48

52.25

24.27

-42.56

Linc Energy Quarterly Data
	Jun06	Jun07	Jun08	Jun09	Jun10	Jun11	Jun12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15
Gross Margin %	Get a 7-Day Free Trial															-53.95	-108.89	-47.00	-63.64	-192.66

Competitive Comparison of Linc Energy's Gross Margin %

For the Oil & Gas E&P subindustry, Linc Energy'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.

Linc Energy's Gross Margin % Distribution in the Oil & Gas Industry

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

* The bar in red indicates where Linc Energy's Gross Margin % falls into.

Linc Energy Gross Margin % Calculation

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

Linc Energy's Gross Margin for the fiscal year that ended in Jun. 2015 is calculated as

Gross Margin % (A: Jun. 2015 )	=	Gross Profit (A: Jun. 2015 )	/	Revenue (A: Jun. 2015 )
	=	-37.4	/	87.786
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(87.786 - 125.149)	/	87.786
	=	-42.56 %

Linc Energy's Gross Margin for the quarter that ended in Dec. 2015 is calculated as

Gross Margin % (Q: Dec. 2015 )	=	Gross Profit (Q: Dec. 2015 )	/	Revenue (Q: Dec. 2015 )
	=	-30.5	/	15.834
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(15.834 - 46.339)	/	15.834
	=	-192.66 %

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.

Linc Energy (ASX:LNC) 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

Linc Energy had a gross margin of -192.66% for the quarter that ended in Dec. 2015 => 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.

Linc Energy Gross Margin % Related Terms

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Linc Energy (ASX:LNC) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Linc Energy Ltd. (ASX:LNC) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

32 Edward Street, Smellie & Company Building, Brisbane, QLD, AUS, 4000

Website

http://www.lincenergy.com

Linc Energy Ltd engages in exploration, development, and production of conventional oil and gas and unconventional syngas through the utilization of its underground coal gasification technology. The company's gulf coast properties are spread across Texas and Louisiana and include various producing wells over active fields, both onshore and in shallow state waters. Its segments consist of Oil and Gas engaged in exploration, development, and production of traditional oil and gas assets in North America; Clean Energy engaged in development and commercialization of Coal-to-Liquids processes through the combined utilization of Underground Coal Gasification and Gas to Liquids technologies; and Shale oil engaged in exploration of the company's petroleum exploration tenements in South Australia.