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Transcontinental Realty Investors (Transcontinental Realty Investors) Gross Margin % : 42.79% (As of Dec. 2023)


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What is Transcontinental Realty Investors Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Transcontinental Realty Investors's Gross Profit for the three months ended in Dec. 2023 was $5.47 Mil. Transcontinental Realty Investors's Revenue for the three months ended in Dec. 2023 was $12.79 Mil. Therefore, Transcontinental Realty Investors's Gross Margin % for the quarter that ended in Dec. 2023 was 42.79%.

Warning Sign:

Transcontinental Realty Investors Inc gross margin has been in long-term decline. The average rate of decline per year is -2.6%.


The historical rank and industry rank for Transcontinental Realty Investors's Gross Margin % or its related term are showing as below:

TCI' s Gross Margin % Range Over the Past 10 Years
Min: 40.68   Med: 47.8   Max: 53.07
Current: 40.68


During the past 13 years, the highest Gross Margin % of Transcontinental Realty Investors was 53.07%. The lowest was 40.68%. And the median was 47.80%.

TCI's Gross Margin % is ranked better than
55.14% of 1654 companies
in the Real Estate industry
Industry Median: 36.83 vs TCI: 40.68

Transcontinental Realty Investors had a gross margin of 42.79% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Transcontinental Realty Investors was -2.60% per year.


Transcontinental Realty Investors Gross Margin % Historical Data

The historical data trend for Transcontinental Realty Investors'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.

Transcontinental Realty Investors Gross Margin % Chart

Transcontinental Realty Investors Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 45.46 53.07 44.83 46.19 40.68

Transcontinental Realty Investors 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 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 50.74 44.54 38.26 37.13 42.79

Competitive Comparison of Transcontinental Realty Investors's Gross Margin %

For the Real Estate Services subindustry, Transcontinental Realty Investors'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.


Transcontinental Realty Investors's Gross Margin % Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, Transcontinental Realty Investors's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Transcontinental Realty Investors's Gross Margin % falls into.



Transcontinental Realty Investors Gross Margin % Calculation

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

Transcontinental Realty Investors'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 )
=19.1 / 47.023
=(Revenue - Cost of Goods Sold) / Revenue
=(47.023 - 27.896) / 47.023
=40.68 %

Transcontinental Realty Investors'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 )
=5.5 / 12.787
=(Revenue - Cost of Goods Sold) / Revenue
=(12.787 - 7.316) / 12.787
=42.79 %

* 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.


Transcontinental Realty Investors  (NYSE:TCI) 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

Transcontinental Realty Investors had a gross margin of 42.79% 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.


Transcontinental Realty Investors Gross Margin % Related Terms

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


Transcontinental Realty Investors (Transcontinental Realty Investors) Business Description

Traded in Other Exchanges
N/A
Address
1603 Lyndon B Johnson Freeway, Suite 800, Dallas, TX, USA, 75234
Transcontinental Realty Investors Inc is a fully integrated externally managed real estate company. It operates multifamily and commercial properties throughout the southern United States and also invests in mortgage notes receivable and in the land that is either held for appreciation or development. The company has two business segments: the acquisition, development, ownership, and management of multifamily properties which include the rental of apartments and other tenant services, including parking and storage space rental, and the acquisition, development, ownership, and management of commercial properties which are office properties. It includes the rental of office space and other tenant services, including parking and storage space rental.
Executives
Louis J Corna officer: EVP, GC/Tax Counsel& Secretary 1800 VALLEY VIEW LANE, DALLAS TX 75234
Erik L Johnson officer: Ex. Vice President and CFO
Daniel J Moos officer: President and CEO 1603 LBJ FREEWAY, SUITE 800, DALLAS TX 75234
American Realty Investors Inc 10 percent owner 1603 LBJ FREEWAY, SUITE 800, DALLAS TX 75234
Transcontinental Realty Acquisition Corp 10 percent owner 1800 VALLEY VIEW LANE, SUITE 300, DALLAS TX 75234
Eqk Holdings Inc 10 percent owner 1800 VALLEY VIEW LANE, SUITE 300, DALLAS TX 75234
Martha C Stephens director 248 SIMMONS, DRIVE, COPPELL TX 75019
Rl S Lemke director, officer: Vice President 1800 VALLEY VIEW LANE, SUITE 300, DALLAS TX 75234
Basic Capital Management Inc 10 percent owner
David R. Fletcher officer: EVP & CFO C/O SOC TELEMED, INC., 1768 BUSINESS CENTER DRIVE, SUITE 100, RESTON VA 20190
Gene S Bertcher officer: EVP & Chief Acctg. Officer 1800 VALLEY VIEW LANE, SUITE 300, DALLAS TX 75234
Reagan K Vidal officer: Ex VP Mg Dir Capital Markets 1800 VALLEY VIEW LANE, SUITE 300, DALLAS TX 75234
Alfred Crozier officer: EVP 1800 VALLEY VIEW LANE, SUITE 300, DALLAS TX 75234
Canon James D Iii officer: Exec. V.P.-Multi-Family Const. 1800 VALLEY VIEW LANE, SUITE 300, DALLAS TX 75234
Transcontinental Realty Investors Inc officer: Exec.V.P.-Multi-Family Const 1603 LBJ FREEWAY, SUITE 800, DALLAS TX 75234