M.D.C. Holdings (M.D.C. Holdings) Gross Margin % : 19.71% (As of Dec. 2023)

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Gross Margin % is calculated as gross profit divided by its revenue. M.D.C. Holdings's Gross Profit for the three months ended in Dec. 2023 was $265 Mil. M.D.C. Holdings's Revenue for the three months ended in Dec. 2023 was $1,346 Mil. Therefore, M.D.C. Holdings's Gross Margin % for the quarter that ended in Dec. 2023 was 19.71%.

The historical rank and industry rank for M.D.C. Holdings's Gross Margin % or its related term are showing as below:

MDC' s Gross Margin % Range Over the Past 10 Years
Min: 17.04 Med: 18.95 Max: 24.06
Current: 18.65

During the past 13 years, the highest Gross Margin % of M.D.C. Holdings was 24.06%. The lowest was 17.04%. And the median was 18.95%.

MDC's Gross Margin % is ranked worse than
66.99% of 103 companies
in the Homebuilding & Construction industry
Industry Median: 21.72 vs MDC: 18.65

M.D.C. Holdings had a gross margin of 19.71% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for M.D.C. Holdings was 1.10% per year.

M.D.C. Holdings Gross Margin % Historical Data

The historical data trend for M.D.C. Holdings'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.

M.D.C. Holdings Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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19.65

22.20

24.06

22.92

18.65

M.D.C. Holdings Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Gross Margin %	Get a 7-Day Free Trial															15.72	17.69	17.44	19.49	19.71

Competitive Comparison

For the Residential Construction subindustry, M.D.C. Holdings'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.

M.D.C. Holdings Gross Margin % Distribution

For the Homebuilding & Construction industry and Consumer Cyclical sector, M.D.C. Holdings's Gross Margin % distribution charts can be found below:

* The bar in red indicates where M.D.C. Holdings's Gross Margin % falls into.

M.D.C. Holdings Gross Margin % Calculation

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

M.D.C. Holdings's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )	=	Gross Profit (A: Dec. 2023 )	/	Revenue (A: Dec. 2023 )
	=	865.7	/	4642.866
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(4642.866 - 3777.129)	/	4642.866
	=	18.65 %

M.D.C. Holdings's Gross Margin for the quarter that ended in Dec. 2023 is calculated as

Gross Margin % (Q: Dec. 2023 )	=	Gross Profit (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	265.4	/	1346.456
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(1346.456 - 1081.036)	/	1346.456
	=	19.71 %

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.

M.D.C. Holdings (NYSE:MDC) 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

M.D.C. Holdings had a gross margin of 19.71% for the quarter that ended in Dec. 2023 => 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.

M.D.C. Holdings Gross Margin % Related Terms

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M.D.C. Holdings (M.D.C. Holdings) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Homebuilding & Construction » M.D.C. Holdings Inc (NYSE:MDC) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

MDH:Germany

Address

4350 South Monaco Street, Suite 500, Denver, CO, USA, 80237

Website

http://www.mdcholdings.com

M.D.C. Holdings Inc is an American holding company that operates home construction, mortgage, insurance, and title companies. The company focuses on single-family and residential communities via its Richmond American Homes brand in Arizona, California, Colorado, Florida, Virginia, Nevada, Utah, and Washington. MDC Holdings constructs homes for first-time and move-up homebuyers. Its segments include Homebuilding and Financial Services. Its Home construction in Colorado, California, Washington, and Arizona derive most of the company's homebuilding revenue, followed by Utah, and Virginia.

Executives

David E Blackford	director	ONE SOUTH MAIN, SUITE 1134, SALT LAKE CITY UT 84111
Reece Paris G Iii	officer: Exec. Vice Pres and CFO	4350 S. MONACO STREET, SUITE 500, DENVER CO 80237
Robert Nathaniel Martin	officer: SVP and CFO	4350 S. MONACO STREET, SUITE 500, DENVER CO 80237
Larry A Mizel	10 percent owner	4350 S. MONACO STREET, SUITE 500, DENVER CO 80237
Michael A Berman	director	4350 S. MONACO STREET, SUITE 500, DENVER CO 80237
Raymond T Baker	director	2401 21ST AVENUE SOUTH, NASHVILLE TN 37212
David D Mandarich	director, officer: President, COO and Director	4350 S. MONACO STREET, SUITE 500, DENVER CO 80237
Herbert T Buchwald	director	4350 S. MONACO STREET, SUITE 500, DENVER CO 80237
Derek R Kimmerle	officer: Chief Accounting Officer	31475 UPPER BEAR CREEK ROAD, EVERGREEN CO 80439
Rafay Farooqui	director	4350 S. MONACO STREET, SUITE 500, DENVER CO 80237
Michael L. Kaplan	officer: Sr. VP and General Counsel	M.D.C. HOLDINGS, INC., 4350 S. MONACO STREET, SUITE 500, DENVER CO 80237
David Siegel	director	4350 SOUTH MONACO STREET, SUITE 500, DENVER CO 80237
Janice Sinden	director	828 FAIRFAX STREET, DENVER CO 80220
Mizel Courtney L.	director	9301 SAWYER STREET, LOS ANGELES CA 90035
Leslie B Fox	director	5511 E. CARON STREET, PARADISE VALLEY AZ 85253