Gross Margin % is calculated as gross profit divided by its revenue. CubeSmart's Gross Profit for the
three
months ended in Dec. 2023 was $194 Mil. CubeSmart's Revenue for the
three
months ended in Dec. 2023 was $265 Mil. Therefore, CubeSmart's Gross Margin % for the quarter that ended in Dec. 2023 was 73.11%.
The historical rank and industry rank for CubeSmart's Gross Margin % or its related term are showing as below:
CUBE'
s Gross Margin % Range Over the Past 10 Years
Min: 64.8 Med: 67.46 Max: 71.94
Current: 71.94
During the past 13 years, the highestGross Margin % of CubeSmart was 71.94%. The lowest was 64.80%. And the median was 67.46%.
CUBE's Gross Margin % is ranked better than 55.99% of 634
companies
in the REITs industry
Industry Median: 68.745
vs CUBE: 71.94
CubeSmart had a gross margin of 73.11% for the quarter that ended in Dec. 2023 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for CubeSmart was 1.50% per year.
CubeSmart Gross Margin % Historical Data
The historical data trend for CubeSmart'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 CubeSmart's Gross Margin %
For the REIT - Industrial subindustry, CubeSmart'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.
CubeSmart's Gross Margin % Distribution in the REITs Industry
For the REITs industry and Real Estate sector, CubeSmart's Gross Margin % distribution charts can be found below:
* The bar in red indicates where CubeSmart'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.
CubeSmart (NYSE:CUBE) 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
CubeSmart had a gross margin of 73.11% 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.
CubeSmart Gross Margin % Related Terms
Thank you for viewing the detailed overview of CubeSmart's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
CubeSmart is a real estate investment trust that acquires, owns, and manages self-storage facilities throughout the United States. The company's real estate portfolio is composed of buildings with numerous enclosed storage areas for both residential and commercial customers to rent mainly on a month-by-month basis. Most of CubeSmart's facilities are located in Florida, Texas, California, New York, and Illinois. Cumulatively, these states account for both the majority of the square footage in the company's real estate portfolio and the majority of its revenue. CubeSmart derives nearly all of its revenue from rental income from tenants utilizing its storage facilities.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
CUBE has been successfully added to your 