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DLR (Digital Realty Trust) Gross Margin % : 54.14% (As of Sep. 2024)


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What is Digital Realty Trust Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Digital Realty Trust's Gross Profit for the three months ended in Sep. 2024 was $775 Mil. Digital Realty Trust's Revenue for the three months ended in Sep. 2024 was $1,431 Mil. Therefore, Digital Realty Trust's Gross Margin % for the quarter that ended in Sep. 2024 was 54.14%.

Warning Sign:

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: 54.39


During the past 13 years, the highest Gross 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
78.37% of 689 companies
in the REITs industry
Industry Median: 68.88 vs DLR: 54.39

Digital Realty Trust had a gross margin of 54.14% for the quarter that ended in Sep. 2024 => 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.

* Premium members only.

Digital Realty Trust Gross Margin % Chart

Digital Realty Trust 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 62.83 61.21 59.84 57.00 52.56

Digital Realty Trust Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 51.22 52.75 55.47 55.24 54.14

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.



Digital Realty Trust Gross Margin % Calculation

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

Digital Realty Trust'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 )
=2879 / 5477.061
=(Revenue - Cost of Goods Sold) / Revenue
=(5477.061 - 2598.071) / 5477.061
=52.56 %

Digital Realty Trust's Gross Margin for the quarter that ended in Sep. 2024 is calculated as


Gross Margin % (Q: Sep. 2024 )=Gross Profit (Q: Sep. 2024 ) / Revenue (Q: Sep. 2024 )
=774.9 / 1431.214
=(Revenue - Cost of Goods Sold) / Revenue
=(1431.214 - 656.361) / 1431.214
=54.14 %

* 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 54.14% for the quarter that ended in Sep. 2024 => 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 Business Description

Address
5707 Southwest Parkway, Building 1, Suite 275, Austin, TX, USA, 78735
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. The company operates as a real estate investment trust.
Executives
Mandeville Jean F H P director C/O INTERXION, SCORPIUS 30, HOOFDDORP P7 2132 LR
Cindy Fiedelman officer: Chief Human Resources Officer FOUR EMBARCADERO CENTER, SUITE 3200, SAN FRANCISCO X1 94111
Peter C. Olson officer: Chief Accounting Officer 5707 SOUTHWEST PARKWAY, BUILDING 1, SUITE 275, AUSTIN TX 78735
Dyer Corey officer: EVP, Global Sales & Marketing FOUR EMBARCADERO CENTER, SUITE 3200, SAN FRANCISCO CA 94111
Christopher Sharp officer: Chief Technology Officer FOUR EMBARCADERO CENTER, SUITE 3200, SAN FRANCISCO CA 94111
Jeannie Lee officer: EVP, General Counsel 5707 SOUTHWEST PARKWAY, BUILDING 1, SUITE 275, AUSTIN TX 78735
A William Stein officer: CFO And CIO DIGITAL REALTY TRUST, INC., FOUR EMBARCADERO CENTER, SUITE 3200, SAN FRANCISCO CA 94111
David C Ruberg officer: MANAGING DIRECTOR, EUROPE 16057 TAMPA PALMS BLVD WEST, #405, TAMPA FL 33647
Kevin Kennedy director
William G Laperch director 360 HAMILTON AVE, C/O ABOVENET INC, WHITE PLAINS NY 10601
Joshua Ananda Mills officer: General Counsel C/O KKR & CO. INC., 30 HUDSON YARDS, NEW YORK NY 10001
Camilla A. Harris officer: Principal Accounting Officer 8020 PARK LANE, DALLAS TX 75231
Andrew Power officer: Chief Financial Officer FOUR EMBARCADERO CENTER, SUITE 3200, SAN FRANCISCO CA 94111
Michael A Coke director TERRENO REALTY CORPORATION, 101 MONTGOMERY STREET, SUITE 200, SAN FRANCISCO CA 94104
Matt Mercier officer: SVP, Finance and Accounting FOUR EMBARCADERO CENTER, SAN FRANCISCO CA 94111