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Leucadia National Corp (NYSE:LUK)
Gross Profit
$4,007 Mil (TTM As of Sep. 2016)

Leucadia National Corp's gross profit for the six months ended in Sep. 2016 was $1,195 Mil. Leucadia National Corp's gross profit for the trailing twelve months (TTM) ended in Sep. 2016 was $4,007 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Leucadia National Corp's gross profit for the six months ended in Sep. 2016 was $1,195 Mil. Leucadia National Corp's revenue for the six months ended in Sep. 2016 was $2,884 Mil. Therefore, Leucadia National Corp's Gross Margin for the quarter that ended in Sep. 2016 was 41.43%.

Leucadia National Corp had a gross margin of 41.43% for the quarter that ended in Sep. 2016 => Durable competitive advantage

During the past 13 years, the highest Gross Margin of Leucadia National Corp was 74.46%. The lowest was 14.16%. And the median was 32.75%.

Warning Sign:

Leucadia National Corp gross margin has been in long term decline. The average rate of decline per year is -14.3%.


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. 2015 is calculated as

Gross Profit (A: Dec. 2015 )=Revenue - Cost of Goods Sold
=11683.927 - 7677.233
=4,007

Leucadia National Corp's Gross Profit for the quarter that ended in Sep. 2016 is calculated as

Gross Profit (Q: Sep. 2016 )=Revenue - Cost of Goods Sold
=2883.71 - 1689.093
=1,195

For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. Leucadia National Corp Gross Profit for the trailing twelve months (TTM) ended in Sep. 2016 was $4,007 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. 2016 is calculated as

Gross Margin (Q: Sep. 2016 )=Gross Profit (Q: Sep. 2016 ) / Revenue (Q: Sep. 2016 )
=(Revenue - Cost of Goods Sold) / Revenue
=1,195 / 2883.71
=41.43 %

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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 41.43% for the quarter that ended in Sep. 2016 => 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 local exchange's currency.

Leucadia National Corp Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
Gross_Profit 641241852908964271,9253,4314,3114,007

Leucadia National Corp Semi-Annual Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
Gross_Profit 1,0561,2128491,4541,0056299195591,0651,195
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