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Kayne Anderson Energy Development Company (NYSE:KED)
Gross Margin
0.00% (As of Feb. 2012)

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 0.00%.

KED' s 10-Year Gross Margin Range
Min: 0   Max: 0
Current: 0

KED's Gross Marginis ranked lower than
100% of the Companies
in the Global Asset Management industry.

( Industry Median: vs. KED: 0.00 )

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

The 3-Year average Growth Rate of Gross Margin for Kayne Anderson Energy Development Company was 0.00% per year.


Definition

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

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

Gross Margin (A: Nov. 2011 )=Gross Profit (A: Nov. 2011 ) / Revenue (A: Nov. 2011 )
=11.2 / 11.199
=(Revenue - Cost of Goods Sold) / Revenue
=(11.199 - 0) / 11.199
=100.00 %

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 )
=2.7 / 2.737
=(Revenue - Cost of Goods Sold) / Revenue
=(2.737 - 0) / 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


Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin and Operating Margin closely helps avoid value trap situations.


Related Terms

Operating Margin, Cost of Goods Sold, Gross Profit, 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 Margin 0.000.000.000.000.000.000.000.000.000.00

Kayne Anderson Energy Development Company Quarterly Data

Nov09Feb10May10Aug10Nov10Feb11May11Aug11Nov11Feb12
Gross Margin 0.000.000.000.000.000.000.000.000.000.00
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