Nippon Hotel & Residential Investment (TSE:3472) Gross Margin % : 56.72% (As of May. 2023)

Nippon Hotel & Residential Investment Gross Margin % Chart

Nippon Hotel & Residential Investment Semi-Annual Data
	May17	Nov17	May18	Nov18	May19	Nov19	May20	Nov20	May21	Nov21	May22	Nov22	May23
Gross Margin %	Get a 7-Day Free Trial								57.20	57.29	56.68	54.64	56.72

Competitive Comparison of Nippon Hotel & Residential Investment's Gross Margin %

For the REIT - Hotel & Motel subindustry, Nippon Hotel & Residential Investment'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.

Nippon Hotel & Residential Investment's Gross Margin % Distribution in the REITs Industry

For the REITs industry and Real Estate sector, Nippon Hotel & Residential Investment's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Nippon Hotel & Residential Investment's Gross Margin % falls into.

Nippon Hotel & Residential Investment Gross Margin % Calculation

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

Nippon Hotel & Residential Investment's Gross Margin for the fiscal year that ended in Nov. 2022 is calculated as

Nippon Hotel & Residential Investment's Gross Margin for the quarter that ended in May. 2023 is calculated as

* 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.

Nippon Hotel & Residential Investment  (TSE:3472) 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

Nippon Hotel & Residential Investment had a gross margin of 56.72% for the quarter that ended in May. 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.

Nippon Hotel & Residential Investment Gross Margin % Related Terms

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Nippon Hotel & Residential Investment (TSE:3472) Business Description