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Kennedy-Wilson Holdings Inc (NYSE:KW)
Gross Profit
$378.0 Mil (TTM As of Dec. 2014)

Kennedy-Wilson Holdings Inc's gross profit for the three months ended in Dec. 2014 was $135.5 Mil. Kennedy-Wilson Holdings Inc's gross profit for the trailing twelve months (TTM) ended in Dec. 2014 was $378.0 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Kennedy-Wilson Holdings Inc's gross profit for the three months ended in Dec. 2014 was $135.5 Mil. Kennedy-Wilson Holdings Inc's revenue for the three months ended in Dec. 2014 was $141.6 Mil. Therefore, Kennedy-Wilson Holdings Inc's Gross Margin for the quarter that ended in Dec. 2014 was 95.69%.

Kennedy-Wilson Holdings Inc had a gross margin of 95.69% for the quarter that ended in Dec. 2014 => Durable competitive advantage

During the past 8 years, the highest Gross Margin of Kennedy-Wilson Holdings Inc was 100.00%. The lowest was 51.38%. And the median was 94.81%.


Definition

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

Kennedy-Wilson Holdings Inc's Gross Profit for the fiscal year that ended in Dec. 2014 is calculated as

Gross Profit (A: Dec. 2014 )=Revenue - Cost of Goods Sold
=398.6 - 20.7
=377.9

Kennedy-Wilson Holdings Inc's Gross Profit for the quarter that ended in Dec. 2014 is calculated as

Gross Profit (Q: Dec. 2014 )=Revenue - Cost of Goods Sold
=141.6 - 6.1
=135.5

Kennedy-Wilson Holdings Inc Gross Profit for the trailing twelve months (TTM) ended in Dec. 2014 was 41.8 (Mar. 2014 ) + 88.1 (Jun. 2014 ) + 112.6 (Sep. 2014 ) + 135.5 (Dec. 2014 ) = $378.0 Mil.

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

Kennedy-Wilson Holdings Inc's Gross Margin for the quarter that ended in Dec. 2014 is calculated as

Gross Margin (Q: Dec. 2014 )=Gross Profit (Q: Dec. 2014 ) / Revenue (Q: Dec. 2014 )
=(Revenue - Cost of Goods Sold) / Revenue
=135.5 / 141.6
=95.69 %

* 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

Kennedy-Wilson Holdings Inc had a gross margin of 95.69% for the quarter that ended in Dec. 2014 => Durable competitive advantage


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.

Kennedy-Wilson Holdings Inc Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
Gross_Profit 0.00.00.032.244.339.062.261.9115.2377.9

Kennedy-Wilson Holdings Inc Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
Gross_Profit 14.022.020.931.332.630.341.888.1112.6135.5
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