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Chesapeake Lodging Trust (Chesapeake Lodging Trust) Gross Margin % : 35.58% (As of Jun. 2019)


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What is Chesapeake Lodging Trust Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Chesapeake Lodging Trust's Gross Profit for the three months ended in Jun. 2019 was $56.6 Mil. Chesapeake Lodging Trust's Revenue for the three months ended in Jun. 2019 was $159.0 Mil. Therefore, Chesapeake Lodging Trust's Gross Margin % for the quarter that ended in Jun. 2019 was 35.58%.


The historical rank and industry rank for Chesapeake Lodging Trust's Gross Margin % or its related term are showing as below:


CHSP's Gross Margin % is not ranked *
in the REITs industry.
Industry Median: 68.83
* Ranked among companies with meaningful Gross Margin % only.

Chesapeake Lodging Trust had a gross margin of 35.58% for the quarter that ended in Jun. 2019 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Chesapeake Lodging Trust was 0.00% per year.


Chesapeake Lodging Trust Gross Margin % Historical Data

The historical data trend for Chesapeake Lodging Trust'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.

Chesapeake Lodging Trust Gross Margin % Chart

Chesapeake Lodging Trust Annual Data
Trend Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18
Gross Margin %
Get a 7-Day Free Trial Premium Member Only 32.03 32.80 32.97 33.92 32.47

Chesapeake Lodging Trust Quarterly Data
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19
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 36.30 33.55 31.17 27.81 35.58

Competitive Comparison of Chesapeake Lodging Trust's Gross Margin %

For the REIT - Hotel & Motel subindustry, Chesapeake Lodging Trust'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.


Chesapeake Lodging Trust's Gross Margin % Distribution in the REITs Industry

For the REITs industry and Real Estate sector, Chesapeake Lodging Trust's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Chesapeake Lodging Trust's Gross Margin % falls into.



Chesapeake Lodging Trust Gross Margin % Calculation

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

Chesapeake Lodging Trust's Gross Margin for the fiscal year that ended in Dec. 2018 is calculated as

Gross Margin % (A: Dec. 2018 )=Gross Profit (A: Dec. 2018 ) / Revenue (A: Dec. 2018 )
=193.9 / 597.172
=(Revenue - Cost of Goods Sold) / Revenue
=(597.172 - 403.282) / 597.172
=32.47 %

Chesapeake Lodging Trust's Gross Margin for the quarter that ended in Jun. 2019 is calculated as


Gross Margin % (Q: Jun. 2019 )=Gross Profit (Q: Jun. 2019 ) / Revenue (Q: Jun. 2019 )
=56.6 / 158.977
=(Revenue - Cost of Goods Sold) / Revenue
=(158.977 - 102.418) / 158.977
=35.58 %

* 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.


Chesapeake Lodging Trust  (NYSE:CHSP) 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

Chesapeake Lodging Trust had a gross margin of 35.58% for the quarter that ended in Jun. 2019 => Competition eroding margins


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.


Chesapeake Lodging Trust Gross Margin % Related Terms

Thank you for viewing the detailed overview of Chesapeake Lodging Trust's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Chesapeake Lodging Trust (Chesapeake Lodging Trust) Business Description

Traded in Other Exchanges
N/A
Address
4300 Wilson Boulevard, Suite 625, Arlington, VA, USA, 22203
Chesapeake Lodging Trust is a real estate investment trust that invests in upper-upscale hotels in business and convention markets and, selectively, premium select-service hotels in urban settings and other locations in the United States. The company operates through its hotel ownership segment. The firm's operations include management agreements, which includes partnering with third parties to manage its hotels; franchise agreements; and TRS lease agreements, which are intercompany agreements between Chesapeake's property-owning subsidiaries and its TRS lessees. The company's revenue streams include room, food and beverage, and other, of which the room segment contributes the vast majority of total revenue.
Executives
Thomas D Eckert director 1997 ANNAPOLIS EXCHANGE PARKWAY, SUITE 410, ANNAPOLIS MD 21401
John W Hill director 1997 ANNAPOLIS EXCHANGE PARKWAY, SUITE 410, ANNAPOLIS MD 21401
James L Francis director, officer: President & CEO 1997 ANNAPOLIS EXCHANGE PARKWAY, SUITE 410, ANNAPOLIS MD 21401
Douglas W Vicari director, officer: EVP & CFO 1997 ANNAPOLIS EXCHANGE PARKWAY, SUITE 410, ANNAPOLIS MD 21401
Thomas A Natelli director 1997 ANNAPOLIS EXCHANGE PARKWAY, SUITE 410, ANNAPOLIS MD 21401
D Rick Adams officer: EVP & COO 1997 ANNAPOLIS EXCHANGE PARKWAY, SUITE 410, ANNAPOLIS MD 21401
Jeffrey D Nuechterlein director 1997 ANNAPOLIS EXCHANGE PARKWAY, SUITE 410, ANNAPOLIS MD 21401
Graham J. Wootten officer: SVP, CAO & Secretary C/O CHESAPEAKE LODGING TRUST, 1997 ANNAPOLIS EXCHANGE PARKWAY, ANNAPOLIS MD 21401
Angelique G. Brunner director C/O CHESAPEAKE LODGING TRUST, 4300 WILSON BOULEVARD, SUITE 625, ARLINGTON VA 22203
George F Mckenzie director 1997 ANNAPOLIS EXCHANGE PARKWAY, SUITE 410, ANNAPOLIS MD 21401
Geoffrey Hulme 10 percent owner C/O PORTER ORLIN LLC, 666 FIFTH AVENUE, 34TH FLOOR, NEW YORK NY 10103
A Alex Porter 10 percent owner C/O PORTER ORLIN LLC, 666 FIFTH AVENUE, 34TH FLOOR, NEW YORK NY 10103
Paul E Orlin 10 percent owner C/O PORTER ORLIN LLC, 666 FIFTH AVENUE, 34TH FLOOR, NEW YORK NY 10103
Jonathan W Friedland 10 percent owner C/O PORTER ORLIN LLC, 666 FIFTH AVENUE, 34TH FLOOR, NEW YORK NY 10103
Porter Orlin Llc 10 percent owner 666 FIFTH AVENUE, SUITE 3403, NEW YORK NY 10103