Toho Real Estate Co. (TSE:8833) Gross Margin % : 19.90% (As of Feb. 2013)

Toho Real Estate Co. Gross Margin % Chart

Toho Real Estate Co. Quarterly Data
	Feb11	May11	Aug11	Nov11	Feb12	May12	Aug12	Nov12	Feb13
Gross Margin %	Get a 7-Day Free Trial				16.59	19.25	15.84	16.91	19.90

Competitive Comparison of Toho Real Estate Co.'s Gross Margin %

For the Real Estate Services subindustry, Toho Real Estate Co.'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.

Toho Real Estate Co.'s Gross Margin % Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, Toho Real Estate Co.'s Gross Margin % distribution charts can be found below:

* The bar in red indicates where Toho Real Estate Co.'s Gross Margin % falls into.

Toho Real Estate Co. Gross Margin % Calculation

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

Toho Real Estate Co.'s Gross Margin for the fiscal year that ended in Feb. 2012 is calculated as

Toho Real Estate Co.'s Gross Margin for the quarter that ended in Feb. 2013 is calculated as

* 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.

Toho Real Estate Co.  (TSE:8833) 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

Toho Real Estate Co. had a gross margin of 19.90% for the quarter that ended in Feb. 2013 => No sustainable 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.

Toho Real Estate Co. Gross Margin % Related Terms

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Toho Real Estate Co. (TSE:8833) Business Description