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Daiwa Office Investment (TSE:8976) Gross Margin % : 59.26% (As of Nov. 2023)


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What is Daiwa Office Investment Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Daiwa Office Investment's Gross Profit for the six months ended in Nov. 2023 was 円8,087 Mil. Daiwa Office Investment's Revenue for the six months ended in Nov. 2023 was 円13,646 Mil. Therefore, Daiwa Office Investment's Gross Margin % for the quarter that ended in Nov. 2023 was 59.26%.


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

TSE:8976' s Gross Margin % Range Over the Past 10 Years
Min: 54.07   Med: 59.18   Max: 63.37
Current: 59.76


During the past 13 years, the highest Gross Margin % of Daiwa Office Investment was 63.37%. The lowest was 54.07%. And the median was 59.18%.

TSE:8976's Gross Margin % is ranked worse than
71.29% of 627 companies
in the REITs industry
Industry Median: 68.91 vs TSE:8976: 59.76

Daiwa Office Investment had a gross margin of 59.26% for the quarter that ended in Nov. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Daiwa Office Investment was 1.50% per year.


Daiwa Office Investment Gross Margin % Historical Data

The historical data trend for Daiwa Office 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.

Daiwa Office Investment Gross Margin % Chart

Daiwa Office Investment Annual Data
Trend Nov13 Nov14 Nov15 Nov16 Nov17 Nov18 Nov19 Nov20 Nov21 Nov22
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 59.62 60.38 61.41 63.37 62.64

Daiwa Office Investment Semi-Annual Data
May14 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 62.93 64.47 60.74 60.21 59.26

Competitive Comparison of Daiwa Office Investment's Gross Margin %

For the REIT - Office subindustry, Daiwa Office 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.


Daiwa Office Investment's Gross Margin % Distribution in the REITs Industry

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

* The bar in red indicates where Daiwa Office Investment's Gross Margin % falls into.



Daiwa Office Investment Gross Margin % Calculation

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

Daiwa Office Investment's Gross Margin for the fiscal year that ended in Nov. 2022 is calculated as

Gross Margin % (A: Nov. 2022 )=Gross Profit (A: Nov. 2022 ) / Revenue (A: Nov. 2022 )
=17769.6 / 28366.205
=(Revenue - Cost of Goods Sold) / Revenue
=(28366.205 - 10596.613) / 28366.205
=62.64 %

Daiwa Office Investment'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 )
=8087.2 / 13646.228
=(Revenue - Cost of Goods Sold) / Revenue
=(13646.228 - 5559.019) / 13646.228
=59.26 %

* 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.


Daiwa Office Investment  (TSE:8976) 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

Daiwa Office Investment had a gross margin of 59.26% 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.


Daiwa Office Investment Gross Margin % Related Terms

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Daiwa Office Investment (TSE:8976) Business Description

Traded in Other Exchanges
N/A
Address
6-2-1 Ginza, Chuo-ku, Tokyo, JPN
Daiwa Office Investment Corp is a real estate investment trust focused on acquiring, managing, and leasing office properties located in the Five Central Wards of Tokyo. The vast majority of the company's real estate portfolio is composed of office buildings fairly evenly distributed between Tokyo's Five Central Wards in terms of total value. Daiwa derives nearly all of its income in the form of rental revenue from leasing its properties. The firm has a varied tenant base from a number of industries, including the entertainment, retail, insurance, and food and beverage companies.

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