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NexPoint Hospitality Trust (TSXV:NHT.U) Gross Margin % : 63.93% (As of Dec. 2023)


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What is NexPoint Hospitality Trust Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. NexPoint Hospitality Trust's Gross Profit for the three months ended in Dec. 2023 was $12.87 Mil. NexPoint Hospitality Trust's Revenue for the three months ended in Dec. 2023 was $20.13 Mil. Therefore, NexPoint Hospitality Trust's Gross Margin % for the quarter that ended in Dec. 2023 was 63.93%.


The historical rank and industry rank for NexPoint Hospitality Trust's Gross Margin % or its related term are showing as below:

TSXV:NHT.U' s Gross Margin % Range Over the Past 10 Years
Min: 54.09   Med: 63.59   Max: 73.05
Current: 63.59


During the past 5 years, the highest Gross Margin % of NexPoint Hospitality Trust was 73.05%. The lowest was 54.09%. And the median was 63.59%.

TSXV:NHT.U's Gross Margin % is not ranked
in the REITs industry.
Industry Median: 68.91 vs TSXV:NHT.U: 63.59

NexPoint Hospitality Trust had a gross margin of 63.93% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for NexPoint Hospitality Trust was 0.00% per year.


NexPoint Hospitality Trust Gross Margin % Historical Data

The historical data trend for NexPoint Hospitality 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.

NexPoint Hospitality Trust Gross Margin % Chart

NexPoint Hospitality Trust Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
73.05 54.09 55.38 64.53 63.59

NexPoint Hospitality Trust 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 68.45 57.58 71.21 62.84 63.93

Competitive Comparison of NexPoint Hospitality Trust's Gross Margin %

For the REIT - Hotel & Motel subindustry, NexPoint Hospitality 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.


NexPoint Hospitality Trust's Gross Margin % Distribution in the REITs Industry

For the REITs industry and Real Estate sector, NexPoint Hospitality Trust's Gross Margin % distribution charts can be found below:

* The bar in red indicates where NexPoint Hospitality Trust's Gross Margin % falls into.



NexPoint Hospitality Trust Gross Margin % Calculation

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

NexPoint Hospitality 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 )
=45.1 / 70.978
=(Revenue - Cost of Goods Sold) / Revenue
=(70.978 - 25.845) / 70.978
=63.59 %

NexPoint Hospitality Trust'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 )
=12.9 / 20.128
=(Revenue - Cost of Goods Sold) / Revenue
=(20.128 - 7.261) / 20.128
=63.93 %

* 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.


NexPoint Hospitality Trust  (TSXV:NHT.U) 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

NexPoint Hospitality Trust had a gross margin of 63.93% 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.


NexPoint Hospitality Trust Gross Margin % Related Terms

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


NexPoint Hospitality Trust (TSXV:NHT.U) Business Description

Traded in Other Exchanges
N/A
Address
333 Bay Street, Suite 3400, Toronto, ON, CAN, M5H 2S7
NexPoint Hospitality Trust is an open-ended real estate investment trust. The REIT has been created for the purpose of acquiring a portfolio of hospitality assets located in the United States and raising capital to acquire additional U.S.-located hospitality assets that meet its investment objectives. The objectives of NHT are to provide unitholders with an opportunity to invest in an initial portfolio of extended-stay, select-service, and efficient full-service hotels. It has one segment owning and operating hotel properties in the U.S.

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