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Kennedy-Wilson Holdings Inc (NYSE:KW)
Gross Profit
$191.9 Mil (TTM As of Jun. 2014)

Kennedy-Wilson Holdings Inc's gross profit for the three months ended in Jun. 2014 was $88.1 Mil. Kennedy-Wilson Holdings Inc's gross profit for the trailing twelve months (TTM) ended in Jun. 2014 was $191.9 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 Jun. 2014 was $88.1 Mil. Kennedy-Wilson Holdings Inc's revenue for the three months ended in Jun. 2014 was $92.0 Mil. Therefore, Kennedy-Wilson Holdings Inc's Gross Margin for the quarter that ended in Jun. 2014 was 95.76%.

Kennedy-Wilson Holdings Inc had a gross margin of 95.76% for the quarter that ended in Jun. 2014 => Durable competitive advantage

During the past 7 years, the highest Gross Margin of Kennedy-Wilson Holdings Inc was 100.00%. The lowest was 77.19%. And the median was 97.95%.


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 Jun. 2014 is calculated as

Gross Profit (Q: Jun. 2014 )=Revenue - Cost of Goods Sold
=92 - 3.9
=88.1

Kennedy-Wilson Holdings Inc Gross Profit for the trailing twelve months (TTM) ended in Jun. 2014 was 32.325 (Sep. 2013 ) + 29.625 (Dec. 2013 ) + 41.8 (Mar. 2014 ) + 88.1 (Jun. 2014 ) = $191.9 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 Jun. 2014 is calculated as

Gross Margin (Q: Jun. 2014 )=Gross Profit (Q: Jun. 2014 ) / Revenue (Q: Jun. 2014 )
=(Revenue - Cost of Goods Sold) / Revenue
=88.1 / 92
=95.76 %

* 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 95.76% for the quarter that ended in Jun. 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

Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Gross_Profit 0.00.00.00.032.286.239.062.261.8113.3

Kennedy-Wilson Holdings Inc Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
Gross_Profit 11.814.114.021.920.530.832.329.641.888.1
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