Derwent London PLC 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 Derwent London's Gross Margin % or its related term are showing as below:
LSE:DLN'
s Gross Margin % Range Over the Past 10 Years
Min: 72.56 Med: 79.71 Max: 82.22
Current: 72.74
During the past 13 years, the highestGross Margin % of Derwent London was 82.22%. The lowest was 72.56%. And the median was 79.71%.
LSE:DLN's Gross Margin % is ranked better than 57.71% of 629
companies
in the REITs industry
Industry Median: 68.8
vs LSE:DLN: 72.74
Derwent London had a gross margin of 74.06% for the quarter that ended in Dec. 2023 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Derwent London was -1.50% per year.
Derwent London Gross Margin % Historical Data
The historical data trend for Derwent London'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 Derwent London's Gross Margin %
For the REIT - Office subindustry, Derwent London'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.
Derwent London's Gross Margin % Distribution in the REITs Industry
For the REITs industry and Real Estate sector, Derwent London's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Derwent London'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.
Derwent London (LSE:DLN) 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
Derwent London had a gross margin of 74.06% 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.
Derwent London Gross Margin % Related Terms
Thank you for viewing the detailed overview of Derwent London's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Derwent London PLC is a London-focused real estate investment trust. Derwent owns, manages, and refurbishes office real estate in Central London. Within this region, the majority of the company's assets are located in the districts of London's West End, such as Fitzrovia. Properties in London's Tech Belt and the City Borders also represent significant parts of the company's real estate portfolio. Derwent derives nearly all of its revenue from tenants in the form of rental income structured in mid-to-long-term leases. Office buildings in the central West End are responsible for the majority of revenue generated. Media and advertising companies, professional and business services firms, and retail head offices are all fairly evenly represented among the company's tenants.
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