Equity Commonwealth gross margin has been in long-term decline. The average rate of decline per year is -1.5%.
The historical rank and industry rank for Equity Commonwealth's Gross Margin % or its related term are showing as below:
EQC'
s Gross Margin % Range Over the Past 10 Years
Min: 54.55 Med: 57.47 Max: 63.69
Current: 54.63
During the past 13 years, the highestGross Margin % of Equity Commonwealth was 63.69%. The lowest was 54.55%. And the median was 57.47%.
EQC's Gross Margin % is ranked worse than 79.5% of 634
companies
in the REITs industry
Industry Median: 68.745
vs EQC: 54.63
Equity Commonwealth had a gross margin of 56.81% for the quarter that ended in Dec. 2023 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Equity Commonwealth was -1.50% per year.
Equity Commonwealth Gross Margin % Historical Data
The historical data trend for Equity Commonwealth'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.
Competitive Comparison of Equity Commonwealth's Gross Margin %
For the REIT - Office subindustry, Equity Commonwealth'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.
Equity Commonwealth's Gross Margin % Distribution in the REITs Industry
For the REITs industry and Real Estate sector, Equity Commonwealth's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Equity Commonwealth's Gross Margin % falls into.
* 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.
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
Equity Commonwealth had a gross margin of 56.81% 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.
Equity Commonwealth Gross Margin % Related Terms
Thank you for viewing the detailed overview of Equity Commonwealth's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Equity Commonwealth (Equity Commonwealth) Business Description
Equity Commonwealth is a real estate investment trust engaged in the acquisition, ownership, and operation of primarily office buildings located throughout the United States. The vast majority of the company's real estate portfolio comprises office assets. These properties are fairly evenly dispersed between many of America's major urban markets, notably Washington, Austin, and Denver. Equity Commonwealth derives the vast majority of its income in the form of rental revenue from tenants occupying its offices. The company's largest tenants in terms of revenue generation include a variety of hiking, household goods, publishing, and financial firms.
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