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Gross Margin % is calculated as gross profit divided by its revenue. Starwood Hotels & Resorts Worldwide's Gross Profit for the three months ended in Jun. 2016 was $1,030 Mil. Starwood Hotels & Resorts Worldwide's Revenue for the three months ended in Jun. 2016 was $1,246 Mil. Therefore, Starwood Hotels & Resorts Worldwide's Gross Margin % for the quarter that ended in Jun. 2016 was 82.66%.
The historical rank and industry rank for Starwood Hotels & Resorts Worldwide's Gross Margin % or its related term are showing as below:
Starwood Hotels & Resorts Worldwide had a gross margin of 82.66% for the quarter that ended in Jun. 2016 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Starwood Hotels & Resorts Worldwide was 0.00% per year.
The historical data trend for Starwood Hotels & Resorts Worldwide'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.
Starwood Hotels & Resorts Worldwide Annual Data | |||||||||||||||||||||
Trend | Dec06 | Dec07 | Dec08 | Dec09 | Dec10 | Dec11 | Dec12 | Dec13 | Dec14 | Dec15 | |||||||||||
Gross Margin % | Get a 7-Day Free Trial | 23.38 | 24.06 | 25.79 | 26.14 | 26.17 |
Starwood Hotels & Resorts Worldwide Quarterly Data | ||||||||||||||||||||
Sep11 | Dec11 | Mar12 | Jun12 | Sep12 | Dec12 | Mar13 | Jun13 | Sep13 | Dec13 | Mar14 | Jun14 | Sep14 | Dec14 | Mar15 | Jun15 | Sep15 | Dec15 | Mar16 | Jun16 | |
Gross Margin % | Get a 7-Day Free Trial | 79.94 | 26.50 | 27.42 | 24.72 | 82.66 |
For the Lodging subindustry, Starwood Hotels & Resorts Worldwide'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.
For the Travel & Leisure industry and Consumer Cyclical sector, Starwood Hotels & Resorts Worldwide's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Starwood Hotels & Resorts Worldwide's Gross Margin % falls into.
Gross Margin is the percentage of Gross Profit out of sales or Revenue.
Starwood Hotels & Resorts Worldwide's Gross Margin for the fiscal year that ended in Dec. 2015 is calculated as
Gross Margin % (A: Dec. 2015 ) | = | Gross Profit (A: Dec. 2015 ) | / | Revenue (A: Dec. 2015 ) |
= | 1508 | / | 5763 | |
= | (Revenue - Cost of Goods Sold) | / | Revenue | |
= | (5763 - 4255) | / | 5763 | |
= | 26.17 % |
Starwood Hotels & Resorts Worldwide's Gross Margin for the quarter that ended in Jun. 2016 is calculated as
Gross Margin % (Q: Jun. 2016 ) | = | Gross Profit (Q: Jun. 2016 ) | / | Revenue (Q: Jun. 2016 ) |
= | 1030 | / | 1246 | |
= | (Revenue - Cost of Goods Sold) | / | Revenue | |
= | (1246 - 216) | / | 1246 | |
= | 82.66 % |
* 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.
Starwood Hotels & Resorts Worldwide (NYSE:HOT) 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
Starwood Hotels & Resorts Worldwide had a gross margin of 82.66% for the quarter that ended in Jun. 2016 => 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.
Thank you for viewing the detailed overview of Starwood Hotels & Resorts Worldwide's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Charlene Barshefsky | director | |
Lizanne Galbreath | director | LASALLE PARTNERS INC, 200 RANDOLPH DR, CHICAGO IL 60601 |
Kenneth S Siegel | officer: CAO & General Counsel | 40 STARWOOD HOTELS & RESORTS, 111 WESTCHESTER AVE, WHITE PLAINS NY 10604 |
Thomas B Mangas | director, officer: Chief Executive Officer | C/O ARMSTRONG WORLD INDUSTRIES, INC., 2500 COLUMBIA AVENUE, LANCASTER PA 17603 |
Sergio Rivera | officer: President, The Americas | C/O STARWOOD HOTELS & RESORTS WORLDWIDE,, ONE STARPOINT, STAMFORD CT 06902 |
Stephen R Quazzo | director | C/O STARWOOD HOTELS & RESORTS WORLDWIDE, 44 SOUTH BROADWAY, WHITE PLAINS NY 10601 |
Daley Clayton C Jr | director | C/O THE PROCTER & GAMBLE COMPANY,, ONE PROCTER & GAMBLE PLAZA, CINCINNATI OH 45202 |
Thomas E Clarke | director | C/O NEWELL RUBBERMAID INC, THREE GLENLAKE PKWY., ATLANTA 2Q 30328 |
Thomas O Ryder | director | C/O READERS DIGEST ASSOCITATION INC, READERS DIGEST RD., PLEASANTVILLE NY 10570 |
Aylwin B Lewis | director | 111 N. CANAL, SUITE 850, CHICAGO IL 60606 |
Eric Hippeau | director | STARWOOD HOTELS & RESORTS WORLDWIDE, 44 SOUTH BROADWAY, WHITE PLAINS NY 10601 |
Bruce W Duncan | director | ONE NORTH WACKER DRIVE, SUITE 4200, CHICAGO IL 60606 |
Adam M Aron | director, officer: CEO on an interim basis | AMC ENTERTAINMENT HOLDINGS, INC, 11500 ASH STREET, LEAWOOD KS 66211 |
Van Paasschen Frits D | director, officer: President and CEO | C/O STARWOOD HOTELS & RESORTS WORLDWIDE, 1111 WESTCHESTER AVENUE, WHITE PLAINS NY 10604 |
Vasant M Prabhu | officer: Vice Chairman & CFO | C/O SAFEWAY INC, 5918 STONERIDGE MALL ROAD, PLEASANTON CA 94588 |
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