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Kennedy-Wilson Holdings Inc (NYSE:KW)
Gross Profit
$113.3 Mil (TTM As of Dec. 2013)

Kennedy-Wilson Holdings Inc's gross profit for the three months ended in Dec. 2013 was $29.6 Mil. Kennedy-Wilson Holdings Inc's gross profit for the trailing twelve months (TTM) ended in Dec. 2013 was $113.3 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. 2013 was $29.6 Mil. Kennedy-Wilson Holdings Inc's revenue for the three months ended in Dec. 2013 was $29.6 Mil. Therefore, Kennedy-Wilson Holdings Inc's Gross Margin for the quarter that ended in Dec. 2013 was 99.95%.

Kennedy-Wilson Holdings Inc had a gross margin of 99.95% for the quarter that ended in Dec. 2013 => Durable competitive advantage

During the past 7 years, the highest Gross Margin of Kennedy-Wilson Holdings Inc was 100.00%. The lowest was 51.38%. And the median was 95.03%.


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. 2013 is calculated as

Gross Profit (A: Dec. 2013 )=Revenue - Cost of Goods Sold
=121.2 - 7.9
=113.3

Kennedy-Wilson Holdings Inc's Gross Profit for the quarter that ended in Dec. 2013 is calculated as

Gross Profit (Q: Dec. 2013 )=Revenue - Cost of Goods Sold
=29.64 - 0.015
=29.6

Kennedy-Wilson Holdings Inc Gross Profit for the trailing twelve months (TTM) ended in Dec. 2013 was 20.525 (Mar. 2013 ) + 30.825 (Jun. 2013 ) + 32.325 (Sep. 2013 ) + 29.625 (Dec. 2013 ) = $113.3 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. 2013 is calculated as

Gross Margin (Q: Dec. 2013 )=Gross Profit (Q: Dec. 2013 ) / Revenue (Q: Dec. 2013 )
=(Revenue - Cost of Goods Sold) / Revenue
=29.6 / 29.64
=99.95 %

* 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 99.95% for the quarter that ended in Dec. 2013 => 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

Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Gross_Profit 0.00.00.00.032.244.339.062.261.9113.3

Kennedy-Wilson Holdings Inc Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
Gross_Profit 12.832.611.814.114.022.020.530.832.329.6
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