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Kayne Anderson Energy Development Company (NYSE:KED)
Gross Profit
$0.00 Mil (TTM As of Feb. 2012)

Kayne Anderson Energy Development Company's gross profit for the three months ended in Feb. 2012 was $0.00 Mil. Kayne Anderson Energy Development Company's gross profit for the trailing twelve months (TTM) ended in Feb. 2012 was $0.00 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Kayne Anderson Energy Development Company's gross profit for the three months ended in Feb. 2012 was $0.00 Mil. Kayne Anderson Energy Development Company's revenue for the three months ended in Feb. 2012 was $2.74 Mil. Therefore, Kayne Anderson Energy Development Company's Gross Margin for the quarter that ended in Feb. 2012 was 100.00%.

Kayne Anderson Energy Development Company had a gross margin of 100.00% for the quarter that ended in Feb. 2012 => Durable competitive advantage


Definition

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

Kayne Anderson Energy Development Company's Gross Profit for the fiscal year that ended in Nov. 2011 is calculated as

Gross Profit (A: Nov. 2011 )=Revenue - Cost of Goods Sold
=11.199 - 0
=11.20

Kayne Anderson Energy Development Company's Gross Profit for the quarter that ended in Feb. 2012 is calculated as

Gross Profit (Q: Feb. 2012 )=Revenue - Cost of Goods Sold
=2.737 - 0
=2.74

Kayne Anderson Energy Development Company Gross Profit for the trailing twelve months (TTM) ended in Feb. 2012 was 0 (May. 2011 ) + 0 (Aug. 2011 ) + 0 (Nov. 2011 ) + 0 (Feb. 2012 ) = $0.00 Mil.

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

Kayne Anderson Energy Development Company's Gross Margin for the quarter that ended in Feb. 2012 is calculated as

Gross Margin (Q: Feb. 2012 )=Gross Profit (Q: Feb. 2012 ) / Revenue (Q: Feb. 2012 )
=(Revenue - Cost of Goods Sold) / Revenue
=2.74 / 2.737
=100.00 %

* 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

Kayne Anderson Energy Development Company had a gross margin of 100.00% for the quarter that ended in Feb. 2012 => 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.

Kayne Anderson Energy Development Company Annual Data

Nov07Nov08Nov09Nov10Nov11
Gross_Profit 0.000.000.000.000.000.000.000.000.000.00

Kayne Anderson Energy Development Company Quarterly Data

Nov09Feb10May10Aug10Nov10Feb11May11Aug11Nov11Feb12
Gross_Profit 0.000.000.000.000.000.000.000.000.000.00
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