One way to represent the economics of a refinery is to calculate its Refinery Gross Margin. GRM is the difference between crude oil price and total value of petroleum products produced by the refinery.
The difference in dollars per barrel between its product revenue (sum of barrels of each product multiplied by the price of each product) and the cost of raw materials (primarily crude, but also purchased additives like butane and ethanol). For example, if a refinery receives $80 from the sale of the products refined from a barrel of crude oil that costs $70/bbl, then the Refinery Gross Margin is $10/bbl. The Net or Cash Margin is equal to the gross margin minus the operating costs (excluding income taxes, depreciation and financial charges). Continuing the example, if a refinery experiences operating costs of $2 per barrel, then the Net Margin is $8/bbl.
The second point which determines the GRM of a refinery is its Nelson Complexity. Higher Nelson Complexity of a refinery enables it to process sour crude which gives a better GRM, due to price differential of crude between sweet crude and sour crude. Sweet and sour depend on sulphur content of crude oil and sweet has less than 0.5 per cent sulphur while sour crude has more than 0.5 per cent.
Higher the GRM's higher the Profit Yields.
The factors that have contributed to high GRMs are
Gross Margin = (Gross Profit/Sales)*100 Gross Profit = Sales - Cost of Sales Or in words, the Gross Margin is an expression of the Gross Profit as a percentage of Sales, where the Gross Profit is Sales minus the Cost of Sales.
Last Twelve Months Gross Margin
Gross Profit/Net Sales = Gross Profit Margin.
Gross profit is the amount of profit in dollars...gross margin is the % profit to expenses
Yes. COGS is the difference between Sales and Gross Margin. If your gross margin is 40%, then your COGS is 60% (100% - 40%). So, if your Sales are 1,000 and you have a 40% Gross Margin, your COGS = 600 (1,000 x 60%) or (1,000 - 400).
Gross Margin % which is calculated as Gross Margin / Sales
Last Twelve Months Gross Margin
Gross Margin = (Gross Profit/Sales)*100 Gross Profit = Sales - Cost of Sales Or in words, the Gross Margin is an expression of the Gross Profit as a percentage of Sales, where the Gross Profit is Sales minus the Cost of Sales.
Gross Profit/Net Sales = Gross Profit Margin.
Gross profit is the amount of profit in dollars...gross margin is the % profit to expenses
gross margin ratio is calculated as >GROSS PROFIT/NET SALES
Gross margin is Gross income as a percentage of revenue. Net Margin is net income as a percentage of revenue.
Yes. COGS is the difference between Sales and Gross Margin. If your gross margin is 40%, then your COGS is 60% (100% - 40%). So, if your Sales are 1,000 and you have a 40% Gross Margin, your COGS = 600 (1,000 x 60%) or (1,000 - 400).
Gross Margin = (Gross Profit/Sales)*100 Gross Profit = Sales - Cost of Sales Or in words, the Gross Margin is an expression of the Gross Profit as a percentage of Sales, where the Gross Profit is Sales minus the Cost of Sales.
The Gross Margin, also known as the Gross Profit Margin, is an expression of the Gross Profit as a percentage of the Revenue. It is calculated using the following: Gross Profit Margin = Gross Profit/Revenue*100 Looking at the input variables of the equation, it is clear that the factors that would affect the Gross Profit Margin would be the Gross Profit and the Revenue. What affects Gross Profit and Revenue would be an endless topic of it's own.
Gross profit = sales - cost of good sold Gross profit margin = gross profit / sales *100 Gross profit = 240000- 108000 = 132000 Gross profit margin = 132000/240000 *100 Gross profit margin = 55%
Gross Margin = (Gross Profit/Sales)*100 Gross Profit = Sales - Cost of Sales Or in words, the Gross Margin is an expression of the Gross Profit as a percentage of Sales, where the Gross Profit is Sales minus the Cost of Sales.