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Leucadia National Corp (NYSE:LUK)
Gross Profit
$3,723 Mil (TTM As of Mar. 2015)

Leucadia National Corp's gross profit for the three months ended in Mar. 2015 was $1,454 Mil. Leucadia National Corp's gross profit for the trailing twelve months (TTM) ended in Mar. 2015 was $3,723 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Leucadia National Corp's gross profit for the three months ended in Mar. 2015 was $1,454 Mil. Leucadia National Corp's revenue for the three months ended in Mar. 2015 was $3,377 Mil. Therefore, Leucadia National Corp's Gross Margin for the quarter that ended in Mar. 2015 was 43.07%.

Leucadia National Corp had a gross margin of 43.07% for the quarter that ended in Mar. 2015 => Durable competitive advantage

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 50.41%.

Warning Sign:

Leucadia National Corp gross margin has been in long term decline. The average rate of decline per year is -17.9%.


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. 2014 is calculated as

Gross Profit (A: Dec. 2014 )=Revenue - Cost of Goods Sold
=11486.485 - 8024.286
=3,462

Leucadia National Corp's Gross Profit for the quarter that ended in Mar. 2015 is calculated as

Gross Profit (Q: Mar. 2015 )=Revenue - Cost of Goods Sold
=3376.521 - 1922.223
=1,454

Leucadia National Corp Gross Profit for the trailing twelve months (TTM) ended in Mar. 2015 was 1056.502 (Jun. 2014 ) + 1211.885 (Sep. 2014 ) + 0.501 (Dec. 2014 ) + 1454.298 (Mar. 2015 ) = $3,723 Mil.

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

Leucadia National Corp'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
=1,454 / 3376.521
=43.07 %

* 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 43.07% 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.

Leucadia National Corp Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
Gross_Profit 51641241852908961,1341,9262,8583,462

Leucadia National Corp Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
Gross_Profit 7924679648076211,1931,0571,21211,454
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