Workspace Group (LSE:WKP) Gross Margin % : 67.25% (As of Sep. 2023)

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What is Workspace Group Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Workspace Group's Gross Profit for the six months ended in Sep. 2023 was £61.0 Mil. Workspace Group's Revenue for the six months ended in Sep. 2023 was £90.7 Mil. Therefore, Workspace Group's Gross Margin % for the quarter that ended in Sep. 2023 was 67.25%.

Warning Sign:

Workspace Group PLC gross margin has been in long-term decline. The average rate of decline per year is -3.3%.

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

LSE:WKP' s Gross Margin % Range Over the Past 10 Years
Min: 57.27 Med: 70.91 Max: 75.59
Current: 66.54

During the past 13 years, the highest Gross Margin % of Workspace Group was 75.59%. The lowest was 57.27%. And the median was 70.91%.

LSE:WKP's Gross Margin % is ranked worse than
55.1% of 628 companies
in the REITs industry
Industry Median: 68.865 vs LSE:WKP: 66.54

Workspace Group had a gross margin of 67.25% for the quarter that ended in Sep. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Workspace Group was -3.30% per year.

Workspace Group Gross Margin % Historical Data

The historical data trend for Workspace Group'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.

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Workspace Group Gross Margin % Chart

Workspace Group Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Gross Margin %

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74.30

75.59

57.27

65.24

66.93

Workspace Group Semi-Annual Data
	Mar14	Sep14	Mar15	Sep15	Mar16	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23
Gross Margin %	Get a 7-Day Free Trial															66.99	63.74	68.17	65.83	67.25

Competitive Comparison of Workspace Group's Gross Margin %

For the REIT - Office subindustry, Workspace Group'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.

Workspace Group's Gross Margin % Distribution in the REITs Industry

For the REITs industry and Real Estate sector, Workspace Group's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Workspace Group's Gross Margin % falls into.

Workspace Group Gross Margin % Calculation

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

Workspace Group's Gross Margin for the fiscal year that ended in Mar. 2023 is calculated as

Gross Margin % (A: Mar. 2023 )	=	Gross Profit (A: Mar. 2023 )	/	Revenue (A: Mar. 2023 )
	=	116.6	/	174.2
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(174.2 - 57.6)	/	174.2
	=	66.93 %

Workspace Group's Gross Margin for the quarter that ended in Sep. 2023 is calculated as

Gross Margin % (Q: Sep. 2023 )	=	Gross Profit (Q: Sep. 2023 )	/	Revenue (Q: Sep. 2023 )
	=	61	/	90.7
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(90.7 - 29.7)	/	90.7
	=	67.25 %

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.

Workspace Group (LSE:WKP) 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

Workspace Group had a gross margin of 67.25% for the quarter that ended in Sep. 2023 => 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.

Workspace Group Gross Margin % Related Terms

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Workspace Group (LSE:WKP) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » REITs » Workspace Group PLC (LSE:WKP) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

WKPl:UK

Address

1-3 Brixton Road, Canterbury Court, Kennington Park, London, GBR, SW9 6DE

Website

https://www.workspace.co.uk

Workspace Group PLC is a real estate investment trust engaged in the acquisition, design, development, and ownership of office buildings throughout London. The company mainly focuses on leasing office properties to new and growing companies. The real estate assets in Workspace's portfolio are clustered around the London area of Farringdon and elsewhere in northern and central London. The company derives the vast majority of its income in the form of rental revenue from tenants organized into short-term leases. Workspace's tenants include marketing, business consultancy, fashion, finance, software, and architectural firms.

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