Gross Margin % is calculated as gross profit divided by its revenue. Ashford's Gross Profit for the
three
months ended in Dec. 2023 was $25.0 Mil. Ashford's Revenue for the
three
months ended in Dec. 2023 was $187.7 Mil. Therefore, Ashford's Gross Margin % for the quarter that ended in Dec. 2023 was 13.29%.
Warning Sign:
Ashford Inc gross margin has been in long-term decline. The average rate of decline per year is -5.4%.
The historical rank and industry rank for Ashford's Gross Margin % or its related term are showing as below:
AINC'
s Gross Margin % Range Over the Past 10 Years
Min: -233.34 Med: 18.28 Max: 29.74
Current: 14.43
During the past 13 years, the highestGross Margin % of Ashford was 29.74%. The lowest was -233.34%. And the median was 18.28%.
AINC's Gross Margin % is ranked worse than 79.66% of 531
companies
in the Asset Management industry
Industry Median: 51.29
vs AINC: 14.43
Ashford had a gross margin of 13.29% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Ashford was -5.40% per year.
Ashford Gross Margin % Historical Data
The historical data trend for Ashford'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 Ashford's Gross Margin %
For the Asset Management subindustry, Ashford'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.
Ashford's Gross Margin % Distribution in the Asset Management Industry
For the Asset Management industry and Financial Services sector, Ashford's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Ashford'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.
Ashford (AMEX:AINC) 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
Ashford had a gross margin of 13.29% for the quarter that ended in Dec. 2023 => No sustainable 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.
Ashford Gross Margin % Related Terms
Thank you for viewing the detailed overview of Ashford's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Ashford Inc is a provider of asset management and advisory services to other entities, primarily within the hospitality industry. The company's operating segments include REIT Advisory, Remington, Premier, INSPIRE, RED and OpenKey, and Corporate and Other. It generates maximum revenue from the Remington segment. INSPIRE segment provides event technology and creative communications solutions services. The REIT Advisory segment provides asset management and advisory services to other entities. Its Remington segment provides hotel management services. Geographically, it derives a majority of its revenue from the United States and also has a presence in Mexico and All other countries.
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