Gross Margin % is calculated as gross profit divided by its revenue. NNN REIT's Gross Profit for the
three
months ended in Sep. 2024 was $211.3 Mil. NNN REIT's Revenue for the
three
months ended in Sep. 2024 was $218.6 Mil. Therefore, NNN REIT's Gross Margin % for the quarter that ended in Sep. 2024 was 96.68%.
The historical rank and industry rank for NNN REIT's Gross Margin % or its related term are showing as below:
NNN'
s Gross Margin % Range Over the Past 10 Years
Min: 95.65 Med: 96.01 Max: 96.61
Current: 96.61
During the past 13 years, the highestGross Margin % of NNN REIT was 96.61%. The lowest was 95.65%. And the median was 96.01%.
NNN's Gross Margin % is ranked better than 93.03% of 689
companies
in the REITs industry
Industry Median: 68.88
vs NNN: 96.61
NNN REIT had a gross margin of 96.68% for the quarter that ended in Sep. 2024 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for NNN REIT was 0.20% per year.
NNN REIT Gross Margin % Historical Data
The historical data trend for NNN REIT'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.
Competitive Comparison of NNN REIT's Gross Margin %
For the REIT - Retail subindustry, NNN REIT'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.
NNN REIT's Gross Margin % Distribution in the REITs Industry
For the REITs industry and Real Estate sector, NNN REIT's Gross Margin % distribution charts can be found below:
* The bar in red indicates where NNN REIT's Gross Margin % falls into.
* 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.
NNN REIT (NYSE:NNN) 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
NNN REIT had a gross margin of 96.68% 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.
NNN REIT Gross Margin % Related Terms
Thank you for viewing the detailed overview of NNN REIT's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
NNN REIT Inc is a real estate investment trust that invests in and develops properties throughout the United States. The company generates revenue from leasing properties to tenants, including convenience stores, automotive services, fitness centers, theatres, restaurants, and banks. Rents from convenience stores and restaurants contribute the majority proportion of total revenue, followed by automotive services, entertainment venues, and others. maximum of the company's properties are located in the South and Southeast of the United States.
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