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Kennedy-Wilson Holdings Inc (NYSE:KW)
Gross Profit
$676.1 Mil (TTM As of Sep. 2016)

Kennedy-Wilson Holdings Inc's gross profit for the three months ended in Sep. 2016 was $171.8 Mil. Kennedy-Wilson Holdings Inc's gross profit for the trailing twelve months (TTM) ended in Sep. 2016 was $676.1 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 Sep. 2016 was $171.8 Mil. Kennedy-Wilson Holdings Inc's revenue for the three months ended in Sep. 2016 was $174.3 Mil. Therefore, Kennedy-Wilson Holdings Inc's Gross Margin for the quarter that ended in Sep. 2016 was 98.57%.

Kennedy-Wilson Holdings Inc had a gross margin of 98.57% for the quarter that ended in Sep. 2016 => Durable competitive advantage

During the past 9 years, the highest Gross Margin of Kennedy-Wilson Holdings Inc was 100.00%. The lowest was 51.38%. And the median was 95.76%.


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. 2015 is calculated as

Gross Profit (A: Dec. 2015 )=Revenue - Cost of Goods Sold
=603.7 - 2.6
=601.1

Kennedy-Wilson Holdings Inc's Gross Profit for the quarter that ended in Sep. 2016 is calculated as

Gross Profit (Q: Sep. 2016 )=Revenue - Cost of Goods Sold
=174.3 - 2.5
=171.8

Kennedy-Wilson Holdings Inc Gross Profit for the trailing twelve months (TTM) ended in Sep. 2016 was 166.3 (Dec. 2015 ) + 170.7 (Mar. 2016 ) + 167.3 (Jun. 2016 ) + 171.8 (Sep. 2016 ) = $676.1 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 Sep. 2016 is calculated as

Gross Margin (Q: Sep. 2016 )=Gross Profit (Q: Sep. 2016 ) / Revenue (Q: Sep. 2016 )
=(Revenue - Cost of Goods Sold) / Revenue
=171.8 / 174.3
=98.57 %

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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 98.57% for the quarter that ended in Sep. 2016 => 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 local exchange's currency.

Kennedy-Wilson Holdings Inc Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
Gross_Profit 0.00.032.244.339.062.264.7115.2377.9601.1

Kennedy-Wilson Holdings Inc Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
Gross_Profit 88.1112.6135.5136.2140.5158.1166.3170.7167.3171.8
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