Switch to:
Kratos Defense & Security Solutions Inc (NAS:KTOS)
Gross Profit
$226.8 Mil (TTM As of Mar. 2014)

Kratos Defense & Security Solutions Inc's gross profit for the three months ended in Mar. 2014 was $52.6 Mil. Kratos Defense & Security Solutions Inc's gross profit for the trailing twelve months (TTM) ended in Mar. 2014 was $226.8 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Kratos Defense & Security Solutions Inc's gross profit for the three months ended in Mar. 2014 was $52.6 Mil. Kratos Defense & Security Solutions Inc's revenue for the three months ended in Mar. 2014 was $200.1 Mil. Therefore, Kratos Defense & Security Solutions Inc's Gross Margin for the quarter that ended in Mar. 2014 was 26.29%.

Kratos Defense & Security Solutions Inc had a gross margin of 26.29% for the quarter that ended in Mar. 2014 => Competition eroding margins

During the past 13 years, the highest Gross Margin of Kratos Defense & Security Solutions Inc was 48.55%. The lowest was 16.32%. And the median was 24.03%.


Definition

Gross Profit is the different between the sale prices and the cost of buying or producing the goods.

Kratos Defense & Security Solutions Inc's Gross Profit for the fiscal year that ended in Dec. 2012 is calculated as

Gross Profit (A: Dec. 2012 )=Revenue - Cost of Goods Sold
=969.2 - 712
=257.2

Kratos Defense & Security Solutions Inc's Gross Profit for the quarter that ended in Mar. 2014 is calculated as

Gross Profit (Q: Mar. 2014 )=Revenue - Cost of Goods Sold
=200.1 - 147.5
=52.6

Kratos Defense & Security Solutions Inc Gross Profit for the trailing twelve months (TTM) ended in Mar. 2014 was 60.4 (Jun. 2013 ) + 52.3 (Sep. 2013 ) + 61.5 (Dec. 2013 ) + 52.6 (Mar. 2014 ) = $226.8 Mil.

Gross Profit is the numerator in the calculation of Gross Margin:

Kratos Defense & Security Solutions Inc's Gross Margin for the quarter that ended in Mar. 2014 is calculated as

Gross Margin (Q: Mar. 2014 )=Gross Profit (Q: Mar. 2014 ) / Revenue (Q: Mar. 2014 )
=(Revenue - Cost of Goods Sold) / Revenue
=52.6 / 200.1
=26.29 %

* All numbers are in millions except for per share data and ratio. All numbers are in their own 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.


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

Kratos Defense & Security Solutions Inc had a gross margin of 26.29% for the quarter that ended in Mar. 2014 => Competition eroding margins


Related Terms

Cost of Goods Sold, Gross Margin, Revenue


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Kratos Defense & Security Solutions Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Gross_Profit 69.436.628.931.658.263.684.3191.2257.2240.0

Kratos Defense & Security Solutions Inc Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
Gross_Profit 59.457.857.774.168.065.760.452.361.552.6
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK
Email Hide