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Granite Real Estate Investment Trust (Granite Real Estate Investment Trust) Operating Margin %

: 77.22% (As of Dec. 2023)
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Operating Margin % is calculated as Operating Income divided by its Revenue. Granite Real Estate Investment Trust's Operating Income for the three months ended in Dec. 2023 was $74.7 Mil. Granite Real Estate Investment Trust's Revenue for the three months ended in Dec. 2023 was $96.8 Mil. Therefore, Granite Real Estate Investment Trust's Operating Margin % for the quarter that ended in Dec. 2023 was 77.22%.

Good Sign:

Granite Real Estate Investment Trust operating margin is expanding. Margin expansion is usually a good sign.

The historical rank and industry rank for Granite Real Estate Investment Trust's Operating Margin % or its related term are showing as below:

GRP.U' s Operating Margin % Range Over the Past 10 Years
Min: 74   Med: 75.91   Max: 83.75
Current: 75.31


GRP.U's Operating Margin % is ranked better than
82.73% of 695 companies
in the REITs industry
Industry Median: 51.83 vs GRP.U: 75.31

Granite Real Estate Investment Trust's 5-Year Average Operating Margin % Growth Rate was 0.10% per year.

Granite Real Estate Investment Trust's Operating Income for the three months ended in Dec. 2023 was $74.7 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was $291.3 Mil.


Granite Real Estate Investment Trust Operating Margin % Historical Data

The historical data trend for Granite Real Estate Investment Trust's Operating 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.

Granite Real Estate Investment Trust Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Operating Margin %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 75.27 76.33 74.45 76.67 75.30

Granite Real Estate Investment Trust Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Operating Margin % 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 Premium Member Only Premium Member Only Premium Member Only 74.39 71.30 76.26 76.42 77.22

Competitive Comparison

For the REIT - Industrial subindustry, Granite Real Estate Investment Trust's Operating Margin %, along with its competitors' market caps and Operating 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.


Granite Real Estate Investment Trust Operating Margin % Distribution

For the REITs industry and Real Estate sector, Granite Real Estate Investment Trust's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Granite Real Estate Investment Trust's Operating Margin % falls into.



Granite Real Estate Investment Trust Operating Margin % Calculation

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

Granite Real Estate Investment Trust's Operating Margin % for the fiscal year that ended in Dec. 2023 is calculated as

Operating Margin %=Operating Income (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=292.581 / 388.529
=75.30 %

Granite Real Estate Investment Trust's Operating Margin % for the quarter that ended in Dec. 2023 is calculated as

Operating Margin %=Operating Income (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=74.735 / 96.785
=77.22 %

* 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.


Granite Real Estate Investment Trust  (NYSE:GRP.U) Operating Margin % Explanation

Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.


Be Aware

Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia’s Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Granite Real Estate Investment Trust Operating Margin % Related Terms

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Granite Real Estate Investment Trust (Granite Real Estate Investment Trust) Business Description

Traded in Other Exchanges
Address
77 King Street West, Suite 4010, P.O. Box 159, Toronto-Dominion Centre, Toronto, ON, CAN, M5K 1H1
Granite Real Estate Investment Trust, or Granite, is a real estate investment trust engaged in the acquisition, development, ownership and management of of logistics, warehouse and industrial properties in North America and Europe. Granite's portfolio comprises various manufacturing, corporate office, warehouse and logistics, and product engineering facilities. The vast majority of the company's assets are logistics and distribution warehouses and multipurpose buildings split fairly evenly amongst Canadian, Austrian, and U.S. locations. Granite derives nearly all of its revenue in the form of rental income from its properties. The company's tenant is Magna International, an automotive parts and systems manufacturer, which accounts for the majority of Granite's lease income.

Granite Real Estate Investment Trust (Granite Real Estate Investment Trust) Headlines

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