Gross Margin % is calculated as gross profit divided by its revenue. KKR's Gross Profit for the
three
months ended in Dec. 2023 was $1,116 Mil. KKR's Revenue for the
three
months ended in Dec. 2023 was $4,373 Mil. Therefore, KKR's Gross Margin % for the quarter that ended in Dec. 2023 was 25.53%.
Warning Sign:
KKR & Co Inc gross margin has been in long-term decline. The average rate of decline per year is -6.2%.
The historical rank and industry rank for KKR's Gross Margin % or its related term are showing as below:
KKR'
s Gross Margin % Range Over the Past 10 Years
Min: -13.86 Med: 42.73 Max: 52.34
Current: 34.11
During the past 13 years, the highestGross Margin % of KKR was 52.34%. The lowest was -13.86%. And the median was 42.73%.
KKR's Gross Margin % is ranked worse than 64.73% of 533
companies
in the Asset Management industry
Industry Median: 50.22
vs KKR: 34.11
KKR had a gross margin of 25.53% for the quarter that ended in Dec. 2023 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for KKR was -6.20% per year.
KKR Gross Margin % Historical Data
The historical data trend for KKR's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
* Premium members only.
KKR Annual Data
Trend
Dec14
Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
Dec21
Dec22
Dec23
Gross Margin %
49.85
49.12
42.81
36.06
33.94
KKR Quarterly Data
Mar19
Jun19
Sep19
Dec19
Mar20
Jun20
Sep20
Dec20
Mar21
Jun21
Sep21
Dec21
Mar22
Jun22
Sep22
Dec22
Mar23
Jun23
Sep23
Dec23
Gross Margin %
31.82
31.35
33.27
49.12
25.53
Competitive Comparison
For the Asset Management subindustry, KKR's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
KKR Gross Margin % Distribution
For the Asset Management industry and Financial Services sector, KKR's Gross Margin % distribution charts can be found below:
* The bar in red indicates where KKR's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange 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.
KKR (NYSE:KKR) Gross Margin % 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
KKR had a gross margin of 25.53% for the quarter that ended in Dec. 2023 => Competition eroding margins
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.
KKR Gross Margin % Related Terms
Thank you for viewing the detailed overview of KKR's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
KKR is one of the world's largest alternative asset managers, with $518.5 billion in total assets under management, including $420.0 billion in fee-earning AUM, at the end of June 2023. The company has two core segments: asset management (which includes private markets—private equity, credit, infrastructure, energy, and real estate—and public markets—primarily credit and hedge/investment fund platforms) and insurance (following the October 2020 purchase of a 61.5% economic stake in Global Atlantic Financial Group, which is engaged in retirement/annuity and life insurance lines as well as reinsurance). On the asset management side, private markets account for 50% of fee-earning AUM and 70% of base management fees, while public markets account for 50% and 30%, respectively.
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