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Timbercreek Financial (TSX:TF) Gross Margin % : 44.68% (As of Mar. 2024)


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What is Timbercreek Financial Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Timbercreek Financial's Gross Profit for the three months ended in Mar. 2024 was C$18.2 Mil. Timbercreek Financial's Revenue for the three months ended in Mar. 2024 was C$40.8 Mil. Therefore, Timbercreek Financial's Gross Margin % for the quarter that ended in Mar. 2024 was 44.68%.

Warning Sign:

Timbercreek Financial Corp gross margin has been in long-term decline. The average rate of decline per year is -2.3%.


The historical rank and industry rank for Timbercreek Financial's Gross Margin % or its related term are showing as below:

TSX:TF' s Gross Margin % Range Over the Past 10 Years
Min: 44.21   Med: 53.03   Max: 83.72
Current: 44.21


During the past 13 years, the highest Gross Margin % of Timbercreek Financial was 83.72%. The lowest was 44.21%. And the median was 53.03%.

TSX:TF's Gross Margin % is ranked better than
56.41% of 39 companies
in the Banks industry
Industry Median: 37.61 vs TSX:TF: 44.21

Timbercreek Financial had a gross margin of 44.68% for the quarter that ended in Mar. 2024 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Timbercreek Financial was -2.30% per year.


Timbercreek Financial Gross Margin % Historical Data

The historical data trend for Timbercreek Financial'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.

Timbercreek Financial Gross Margin % Chart

Timbercreek Financial Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 51.63 52.62 53.43 49.39 44.56

Timbercreek Financial Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 46.00 47.81 44.05 40.64 44.68

Competitive Comparison of Timbercreek Financial's Gross Margin %

For the Mortgage Finance subindustry, Timbercreek Financial'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.


Timbercreek Financial's Gross Margin % Distribution in the Banks Industry

For the Banks industry and Financial Services sector, Timbercreek Financial's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Timbercreek Financial's Gross Margin % falls into.



Timbercreek Financial Gross Margin % Calculation

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

Timbercreek Financial's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )=Gross Profit (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=80.6 / 180.971
=(Revenue - Cost of Goods Sold) / Revenue
=(180.971 - 100.334) / 180.971
=44.56 %

Timbercreek Financial's Gross Margin for the quarter that ended in Mar. 2024 is calculated as


Gross Margin % (Q: Mar. 2024 )=Gross Profit (Q: Mar. 2024 ) / Revenue (Q: Mar. 2024 )
=18.2 / 40.799
=(Revenue - Cost of Goods Sold) / Revenue
=(40.799 - 22.572) / 40.799
=44.68 %

* 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.


Timbercreek Financial  (TSX:TF) 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

Timbercreek Financial had a gross margin of 44.68% for the quarter that ended in Mar. 2024 => 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.


Timbercreek Financial Gross Margin % Related Terms

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Timbercreek Financial (TSX:TF) Business Description

Traded in Other Exchanges
Address
25 Price Street, Toronto, ON, CAN, M4W 1Z1
Timbercreek Financial Corp is a Canada-based non-banking commercial real estate lender. The company provides shorter-duration, customized financing solutions to professional real estate investors. It invests directly in a diversified portfolio of structured mortgage loans primarily secured by stabilized, income-producing commercial real estates, such as multi-residential, office and retail buildings located in urban markets across Canada. The company's strategy is to preserve investor capital by lending mainly against income producing real estate, mitigate concentration risk by diversifying geographically by asset type and borrower and ensure loan to value ratios.
Executives
Robert Blair Tamblyn Director, Director or Senior Officer of Insider or Subsidiary (other than in 4,5,6), Senior Officer

Timbercreek Financial (TSX:TF) Headlines

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