Digital Realty Trust Inc gross margin has been in long-term decline. The average rate of decline per year is -3.6%.
The historical rank and industry rank for Digital Realty Trust's Gross Margin % or its related term are showing as below:
DLR'
s Gross Margin % Range Over the Past 10 Years
Min: 52.56 Med: 63.02 Max: 64.4
Current: 52.57
During the past 13 years, the highestGross Margin % of Digital Realty Trust was 64.40%. The lowest was 52.56%. And the median was 63.02%.
DLR's Gross Margin % is ranked worse than 82.97% of 634
companies
in the REITs industry
Industry Median: 68.745
vs DLR: 52.57
Digital Realty Trust had a gross margin of 52.75% for the quarter that ended in Dec. 2023 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Digital Realty Trust was -3.60% per year.
Digital Realty Trust Gross Margin % Historical Data
The historical data trend for Digital Realty 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.
Competitive Comparison of Digital Realty Trust's Gross Margin %
For the REIT - Specialty subindustry, Digital Realty 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.
Digital Realty Trust's Gross Margin % Distribution in the REITs Industry
For the REITs industry and Real Estate sector, Digital Realty Trust's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Digital Realty Trust'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.
Digital Realty Trust (NYSE:DLR) 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
Digital Realty Trust had a gross margin of 52.75% 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.
Digital Realty Trust Gross Margin % Related Terms
Thank you for viewing the detailed overview of Digital Realty Trust's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Digital Realty Trust (Digital Realty Trust) Business Description
Digital Realty owns and operates over 300 data centers worldwide. It has nearly 40 million rentable square feet across five continents. Digital's offerings range from retail co-location, where an enterprise may rent a single cabinet and rely on Digital to provide all the accommodations, to "cold shells," where hyperscale cloud service providers can simply rent much, or all, of a barren, power-connected building. In recent years, Digital Realty has de-emphasized cold shells and now primarily provides higher-level service to tenants, which outsource their related IT needs to Digital. Digital Realty has also moved more into the co-location business, increasingly serving enterprises and facilitating network and cloud connections. Digital Realty operates as a real estate investment trust.
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