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Kennedy-Wilson Holdings Inc (NYSE:KW)
Gross Profit
$570.3 Mil (TTM As of Sep. 2015)

Kennedy-Wilson Holdings Inc's gross profit for the three months ended in Sep. 2015 was $158.1 Mil. Kennedy-Wilson Holdings Inc's gross profit for the trailing twelve months (TTM) ended in Sep. 2015 was $570.3 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 Sep. 2015 was $158.1 Mil. Kennedy-Wilson Holdings Inc's revenue for the three months ended in Sep. 2015 was $159.2 Mil. Therefore, Kennedy-Wilson Holdings Inc's Gross Margin for the quarter that ended in Sep. 2015 was 99.31%.

Kennedy-Wilson Holdings Inc had a gross margin of 99.31% for the quarter that ended in Sep. 2015 => 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 Sep. 2015 is calculated as

Gross Profit (Q: Sep. 2015 )=Revenue - Cost of Goods Sold
=159.2 - 1.1
=158.1

Kennedy-Wilson Holdings Inc Gross Profit for the trailing twelve months (TTM) ended in Sep. 2015 was 135.5 (Dec. 2014 ) + 136.2 (Mar. 2015 ) + 140.5 (Jun. 2015 ) + 158.1 (Sep. 2015 ) = $570.3 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 Sep. 2015 is calculated as

Gross Margin (Q: Sep. 2015 )=Gross Profit (Q: Sep. 2015 ) / Revenue (Q: Sep. 2015 )
=(Revenue - Cost of Goods Sold) / Revenue
=158.1 / 159.2
=99.31 %

* 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 99.31% for the quarter that ended in Sep. 2015 => 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

Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15
Gross_Profit 31.332.630.341.888.1112.6135.5136.2140.5158.1
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