Switch to:
Kennedy-Wilson Holdings Inc (NYSE:KW)
Gross Profit
$472.4 Mil (TTM As of Mar. 2015)

Kennedy-Wilson Holdings Inc's gross profit for the three months ended in Mar. 2015 was $136.2 Mil. Kennedy-Wilson Holdings Inc's gross profit for the trailing twelve months (TTM) ended in Mar. 2015 was $472.4 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 Mar. 2015 was $136.2 Mil. Kennedy-Wilson Holdings Inc's revenue for the three months ended in Mar. 2015 was $137.7 Mil. Therefore, Kennedy-Wilson Holdings Inc's Gross Margin for the quarter that ended in Mar. 2015 was 98.91%.

Kennedy-Wilson Holdings Inc had a gross margin of 98.91% for the quarter that ended in Mar. 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 Mar. 2015 is calculated as

Gross Profit (Q: Mar. 2015 )=Revenue - Cost of Goods Sold
=137.7 - 1.5
=136.2

Kennedy-Wilson Holdings Inc Gross Profit for the trailing twelve months (TTM) ended in Mar. 2015 was 88.1 (Jun. 2014 ) + 112.6 (Sep. 2014 ) + 135.5 (Dec. 2014 ) + 136.2 (Mar. 2015 ) = $472.4 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 Mar. 2015 is calculated as

Gross Margin (Q: Mar. 2015 )=Gross Profit (Q: Mar. 2015 ) / Revenue (Q: Mar. 2015 )
=(Revenue - Cost of Goods Sold) / Revenue
=136.2 / 137.7
=98.91 %

* 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 98.91% for the quarter that ended in Mar. 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

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
Gross_Profit 22.020.931.332.630.341.888.1112.6135.5136.2
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GuruFocus Premium Plus Membership

FEEDBACK