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Ichigo Hotel REIT Investment (TSE:3463) Gross Margin % : 66.91% (As of Jul. 2023)


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What is Ichigo Hotel REIT Investment Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Ichigo Hotel REIT Investment's Gross Profit for the six months ended in Jul. 2023 was 円1,202 Mil. Ichigo Hotel REIT Investment's Revenue for the six months ended in Jul. 2023 was 円1,797 Mil. Therefore, Ichigo Hotel REIT Investment's Gross Margin % for the quarter that ended in Jul. 2023 was 66.91%.

Warning Sign:

Ichigo Hotel REIT Investment Corp gross margin has been in long-term decline. The average rate of decline per year is -5.8%.


The historical rank and industry rank for Ichigo Hotel REIT Investment's Gross Margin % or its related term are showing as below:

TSE:3463' s Gross Margin % Range Over the Past 10 Years
Min: 49.66   Med: 74.26   Max: 77.14
Current: 65.46


During the past 8 years, the highest Gross Margin % of Ichigo Hotel REIT Investment was 77.14%. The lowest was 49.66%. And the median was 74.26%.

TSE:3463's Gross Margin % is ranked worse than
57.55% of 636 companies
in the REITs industry
Industry Median: 68.57 vs TSE:3463: 65.46

Ichigo Hotel REIT Investment had a gross margin of 66.91% for the quarter that ended in Jul. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Ichigo Hotel REIT Investment was -5.80% per year.


Ichigo Hotel REIT Investment Gross Margin % Historical Data

The historical data trend for Ichigo Hotel REIT Investment'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.

Ichigo Hotel REIT Investment Gross Margin % Chart

Ichigo Hotel REIT Investment Annual Data
Trend Jul16 Jul17 Jul18 Jul19 Jul20 Jul21 Jul22 Jul23
Gross Margin %
Get a 7-Day Free Trial 76.69 77.14 49.66 53.53 65.46

Ichigo Hotel REIT Investment Semi-Annual Data
Jan16 Jul16 Jan17 Jul17 Jan18 Jul18 Jan19 Jul19 Jan20 Jul20 Jan21 Jul21 Jan22 Jul22 Jan23 Jul23
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 50.62 51.80 55.08 63.78 66.91

Competitive Comparison of Ichigo Hotel REIT Investment's Gross Margin %

For the REIT - Hotel & Motel subindustry, Ichigo Hotel REIT Investment'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.


Ichigo Hotel REIT Investment's Gross Margin % Distribution in the REITs Industry

For the REITs industry and Real Estate sector, Ichigo Hotel REIT Investment's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Ichigo Hotel REIT Investment's Gross Margin % falls into.



Ichigo Hotel REIT Investment Gross Margin % Calculation

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

Ichigo Hotel REIT Investment's Gross Margin for the fiscal year that ended in Jul. 2023 is calculated as

Gross Margin % (A: Jul. 2023 )=Gross Profit (A: Jul. 2023 ) / Revenue (A: Jul. 2023 )
=2182.4 / 3333.746
=(Revenue - Cost of Goods Sold) / Revenue
=(3333.746 - 1151.367) / 3333.746
=65.46 %

Ichigo Hotel REIT Investment's Gross Margin for the quarter that ended in Jul. 2023 is calculated as


Gross Margin % (Q: Jul. 2023 )=Gross Profit (Q: Jul. 2023 ) / Revenue (Q: Jul. 2023 )
=1202 / 1796.545
=(Revenue - Cost of Goods Sold) / Revenue
=(1796.545 - 594.546) / 1796.545
=66.91 %

* 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.


Ichigo Hotel REIT Investment  (TSE:3463) 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

Ichigo Hotel REIT Investment had a gross margin of 66.91% for the quarter that ended in Jul. 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.


Ichigo Hotel REIT Investment Gross Margin % Related Terms

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Ichigo Hotel REIT Investment (TSE:3463) Business Description

Traded in Other Exchanges
N/A
Address
Uchisaiwaicho 1-1-1, Imperial Hotel Tower, Chiyoda-ku, Tokyo, JPN, 100-0011
Ichigo Hotel REIT Investment Corp operates as a real estate investment trust (REIT) investing in hotel properties. Its investment portfolio includes hotel properties in Sapporo, Kushiro, Yokohama, Tokyo, Hamamatsu, Nagoya, Tokoname, Suzuka, Kyoto, Kobe, Okayama, Osaka, Matsuyama, Hiroshima, Fukuoka and Okinawa.

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