Switch to:
Leucadia National Corp (NYSE:LUK)
Gross Profit
$4,660 Mil (TTM As of Sep. 2014)

Leucadia National Corp's gross profit for the three months ended in Sep. 2014 was $1,212 Mil. Leucadia National Corp's gross profit for the trailing twelve months (TTM) ended in Sep. 2014 was $4,660 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Leucadia National Corp's gross profit for the three months ended in Sep. 2014 was $1,212 Mil. Leucadia National Corp's revenue for the three months ended in Sep. 2014 was $3,214 Mil. Therefore, Leucadia National Corp's Gross Margin for the quarter that ended in Sep. 2014 was 37.71%.

Leucadia National Corp had a gross margin of 37.71% for the quarter that ended in Sep. 2014 => Competition eroding margins

During the past 13 years, the highest Gross Margin of Leucadia National Corp was 100.00%. The lowest was 14.16%. And the median was 87.23%.


Definition

Gross Profit is the different between the sale prices and the cost of buying or producing the goods.

Leucadia National Corp'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
=11002.752 - 7567.707
=3,435

Leucadia National Corp's Gross Profit for the quarter that ended in Sep. 2014 is calculated as

Gross Profit (Q: Sep. 2014 )=Revenue - Cost of Goods Sold
=3213.664 - 2001.779
=1,212

Leucadia National Corp Gross Profit for the trailing twelve months (TTM) ended in Sep. 2014 was 1197.821 (Dec. 2013 ) + 1194.192 (Mar. 2014 ) + 1056.502 (Jun. 2014 ) + 1211.885 (Sep. 2014 ) = $4,660 Mil.

Gross Profit is the numerator in the calculation of Gross Margin:

Leucadia National Corp's Gross Margin for the quarter that ended in Sep. 2014 is calculated as

Gross Margin (Q: Sep. 2014 )=Gross Profit (Q: Sep. 2014 ) / Revenue (Q: Sep. 2014 )
=(Revenue - Cost of Goods Sold) / Revenue
=1,212 / 3213.664
=37.71 %

* 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

Leucadia National Corp had a gross margin of 37.71% for the quarter that ended in Sep. 2014 => Competition eroding margins


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.

Leucadia National Corp Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Gross_Profit 524131641241853869191,1691,6263,435

Leucadia National Corp Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
Gross_Profit 2122815994679648071,1981,1941,0571,212
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)
Free 7-day Trial
FEEDBACK