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Japan Real Estate Investment (TSE:8952) Gross Margin % : 52.24% (As of Sep. 2023)


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What is Japan Real Estate Investment Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Japan Real Estate Investment's Gross Profit for the six months ended in Sep. 2023 was 円20,181 Mil. Japan Real Estate Investment's Revenue for the six months ended in Sep. 2023 was 円38,628 Mil. Therefore, Japan Real Estate Investment's Gross Margin % for the quarter that ended in Sep. 2023 was 52.24%.


The historical rank and industry rank for Japan Real Estate Investment's Gross Margin % or its related term are showing as below:

TSE:8952' s Gross Margin % Range Over the Past 10 Years
Min: 44.16   Med: 49.44   Max: 53.98
Current: 51.69


During the past 13 years, the highest Gross Margin % of Japan Real Estate Investment was 53.98%. The lowest was 44.16%. And the median was 49.44%.

TSE:8952's Gross Margin % is ranked worse than
83.17% of 630 companies
in the REITs industry
Industry Median: 68.83 vs TSE:8952: 51.69

Japan Real Estate Investment had a gross margin of 52.24% for the quarter that ended in Sep. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Japan Real Estate Investment was 1.40% per year.


Japan Real Estate Investment Gross Margin % Historical Data

The historical data trend for Japan Real Estate Investment'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.

Japan Real Estate Investment Gross Margin % Chart

Japan Real Estate Investment Annual Data
Trend Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 50.53 52.84 53.98 52.94 51.69

Japan Real Estate Investment 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 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 55.52 52.29 53.58 51.12 52.24

Competitive Comparison of Japan Real Estate Investment's Gross Margin %

For the REIT - Office subindustry, Japan Real Estate 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.


Japan Real Estate Investment's Gross Margin % Distribution in the REITs Industry

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

* The bar in red indicates where Japan Real Estate Investment's Gross Margin % falls into.



Japan Real Estate Investment Gross Margin % Calculation

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

Japan Real Estate Investment's Gross Margin for the fiscal year that ended in Sep. 2023 is calculated as

Gross Margin % (A: Sep. 2023 )=Gross Profit (A: Sep. 2023 ) / Revenue (A: Sep. 2023 )
=39273.2 / 75973.12
=(Revenue - Cost of Goods Sold) / Revenue
=(75973.12 - 36699.932) / 75973.12
=51.69 %

Japan Real Estate Investment'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 )
=20180.8 / 38627.973
=(Revenue - Cost of Goods Sold) / Revenue
=(38627.973 - 18447.146) / 38627.973
=52.24 %

* 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.


Japan Real Estate Investment  (TSE:8952) 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

Japan Real Estate Investment had a gross margin of 52.24% 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.


Japan Real Estate Investment Gross Margin % Related Terms

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Japan Real Estate Investment (TSE:8952) Business Description

Traded in Other Exchanges
N/A
Address
3-3-1 Marunouchi, Chiyoda-ku, Tokyo, JPN, 100-0005
Japan Real Estate Investment Corp, or J-REIT, is a Japanese real estate investment trust that invests in, owns, and leases office properties. The vast majority of the company's real estate portfolio is located within Tokyo's 23 wards and the Tokyo metropolitan area in terms of total value. Within this area, most of J-REIT's offices reside within the Tokyo central business district. The company derives nearly all of its income in the form of rental revenue from the leasing of its office properties. While J-REIT tenants hail from a diverse assortment of industries, firms from the service, information services, electric devices, and financial services industries are its largest customers in terms of total leased space.

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