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Heiwa Real Estate REIT (TSE:8966) Gross Margin % : 63.06% (As of Nov. 2023)


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What is Heiwa Real Estate REIT Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Heiwa Real Estate REIT's Gross Profit for the six months ended in Nov. 2023 was 円5,459 Mil. Heiwa Real Estate REIT's Revenue for the six months ended in Nov. 2023 was 円8,657 Mil. Therefore, Heiwa Real Estate REIT's Gross Margin % for the quarter that ended in Nov. 2023 was 63.06%.


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

TSE:8966' s Gross Margin % Range Over the Past 10 Years
Min: 52.36   Med: 60.94   Max: 65.86
Current: 62.26


During the past 13 years, the highest Gross Margin % of Heiwa Real Estate REIT was 65.86%. The lowest was 52.36%. And the median was 60.94%.

TSE:8966's Gross Margin % is ranked worse than
64.47% of 636 companies
in the REITs industry
Industry Median: 68.57 vs TSE:8966: 62.26

Heiwa Real Estate REIT had a gross margin of 63.06% for the quarter that ended in Nov. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Heiwa Real Estate REIT was -0.50% per year.


Heiwa Real Estate REIT Gross Margin % Historical Data

The historical data trend for Heiwa Real Estate REIT'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.

Heiwa Real Estate REIT Gross Margin % Chart

Heiwa Real Estate REIT Annual Data
Trend Nov14 Nov15 Nov16 Nov17 Nov18 Nov19 Nov20 Nov21 Nov22 Nov23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 59.43 62.12 60.94 61.95 62.26

Heiwa Real Estate REIT Semi-Annual Data
Nov13 Nov14 May15 Nov15 May16 Nov16 May17 Nov17 May18 Nov18 May19 Nov19 May20 Nov20 May21 Nov21 May22 Nov22 May23 Nov23
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 60.77 61.33 62.52 61.41 63.06

Competitive Comparison of Heiwa Real Estate REIT's Gross Margin %

For the REIT - Diversified subindustry, Heiwa Real Estate REIT'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.


Heiwa Real Estate REIT's Gross Margin % Distribution in the REITs Industry

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

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



Heiwa Real Estate REIT Gross Margin % Calculation

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

Heiwa Real Estate REIT's Gross Margin for the fiscal year that ended in Nov. 2023 is calculated as

Gross Margin % (A: Nov. 2023 )=Gross Profit (A: Nov. 2023 ) / Revenue (A: Nov. 2023 )
=10402.2 / 16706.808
=(Revenue - Cost of Goods Sold) / Revenue
=(16706.808 - 6304.632) / 16706.808
=62.26 %

Heiwa Real Estate REIT's Gross Margin for the quarter that ended in Nov. 2023 is calculated as


Gross Margin % (Q: Nov. 2023 )=Gross Profit (Q: Nov. 2023 ) / Revenue (Q: Nov. 2023 )
=5458.7 / 8656.858
=(Revenue - Cost of Goods Sold) / Revenue
=(8656.858 - 3198.154) / 8656.858
=63.06 %

* 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.


Heiwa Real Estate REIT  (TSE:8966) 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

Heiwa Real Estate REIT had a gross margin of 63.06% for the quarter that ended in Nov. 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.


Heiwa Real Estate REIT Gross Margin % Related Terms

Thank you for viewing the detailed overview of Heiwa Real Estate REIT's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Heiwa Real Estate REIT (TSE:8966) Business Description

Traded in Other Exchanges
N/A
Address
2-5-1, Atago, Minato-ku, Tokyo, JPN, 105-6237
Heiwa Real Estate REIT Inc is a real estate company that primarily invests in office buildings and residential buildings located in the Tokyo Metropolitan Area and other major cities across Japan. The company leases its buildings for rental revenue and renovates its properties. The tenants include both individuals and businesses from various industries such as wholesale and retail, manufacturing, and information and technology services. The company's assets are managed by Heiwa Real Estate Asset Management Co.

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