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Cromwell Property Group (ASX:CMW) Gross Margin % : 84.76% (As of Dec. 2023)


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What is Cromwell Property Group Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Cromwell Property Group's Gross Profit for the six months ended in Dec. 2023 was A$111.2 Mil. Cromwell Property Group's Revenue for the six months ended in Dec. 2023 was A$131.2 Mil. Therefore, Cromwell Property Group's Gross Margin % for the quarter that ended in Dec. 2023 was 84.76%.

Warning Sign:

Cromwell Property Group gross margin has been in long-term decline. The average rate of decline per year is -1.8%.


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

ASX:CMW' s Gross Margin % Range Over the Past 10 Years
Min: 76.96   Med: 81.93   Max: 86.36
Current: 79.55


During the past 13 years, the highest Gross Margin % of Cromwell Property Group was 86.36%. The lowest was 76.96%. And the median was 81.93%.

ASX:CMW's Gross Margin % is ranked better than
72.18% of 629 companies
in the REITs industry
Industry Median: 68.8 vs ASX:CMW: 79.55

Cromwell Property Group had a gross margin of 84.76% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Cromwell Property Group was -1.80% per year.


Cromwell Property Group Gross Margin % Historical Data

The historical data trend for Cromwell Property 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.

* Premium members only.

Cromwell Property Group Gross Margin % Chart

Cromwell Property Group Annual Data
Trend Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 86.36 83.84 77.48 79.46 76.96

Cromwell Property Group Semi-Annual Data
Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
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 79.52 79.40 78.28 75.67 84.76

Competitive Comparison of Cromwell Property Group's Gross Margin %

For the REIT - Office subindustry, Cromwell Property 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.


Cromwell Property Group's Gross Margin % Distribution in the REITs Industry

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

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



Cromwell Property Group Gross Margin % Calculation

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

Cromwell Property Group's Gross Margin for the fiscal year that ended in Jun. 2023 is calculated as

Gross Margin % (A: Jun. 2023 )=Gross Profit (A: Jun. 2023 ) / Revenue (A: Jun. 2023 )
=268.9 / 349.4
=(Revenue - Cost of Goods Sold) / Revenue
=(349.4 - 80.5) / 349.4
=76.96 %

Cromwell Property Group's Gross Margin for the quarter that ended in Dec. 2023 is calculated as


Gross Margin % (Q: Dec. 2023 )=Gross Profit (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=111.2 / 131.2
=(Revenue - Cost of Goods Sold) / Revenue
=(131.2 - 20) / 131.2
=84.76 %

* 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.


Cromwell Property Group  (ASX:CMW) 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

Cromwell Property Group had a gross margin of 84.76% for the quarter that ended in Dec. 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.


Cromwell Property Group Gross Margin % Related Terms

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Cromwell Property Group (ASX:CMW) Business Description

Traded in Other Exchanges
Address
200 Mary Street, Level 19, Brisbane, QLD, AUS, 4000
Cromwell Property Group is an internally managed Australian real estate investment trust. It owns an Australian portfolio of (mostly office) properties and also develops and manages properties on behalf of third-party investors. The group is exploring opportunities to sell some assets, and to spin out its office portfolio into a separate REIT, leaving the Cromwell business to focus more on funds management. The timetable is uncertain given high interest rates are a headwind for property sales and sentiment toward office stocks has been depressed since the rise of hybrid working.

Cromwell Property Group (ASX:CMW) Headlines

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