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Charter Hall Long WALE REIT (ASX:CLW) Gross Margin %

: 83.43% (As of Dec. 2023)
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Gross Margin % is calculated as gross profit divided by its revenue. Charter Hall Long WALE REIT's Gross Profit for the six months ended in Dec. 2023 was A$91.9 Mil. Charter Hall Long WALE REIT's Revenue for the six months ended in Dec. 2023 was A$110.2 Mil. Therefore, Charter Hall Long WALE REIT's Gross Margin % for the quarter that ended in Dec. 2023 was 83.43%.

Warning Sign:

Charter Hall Long WALE REIT gross margin has been in long-term decline. The average rate of decline per year is -3%.


The historical rank and industry rank for Charter Hall Long WALE REIT's Gross Margin % or its related term are showing as below:

ASX:CLW' s Gross Margin % Range Over the Past 10 Years
Min: 69.81   Med: 73.3   Max: 86.34
Current: 69.81


During the past 7 years, the highest Gross Margin % of Charter Hall Long WALE REIT was 86.34%. The lowest was 69.81%. And the median was 73.30%.

ASX:CLW's Gross Margin % is ranked better than
52.45% of 633 companies
in the REITs industry
Industry Median: 68.71 vs ASX:CLW: 69.81

Charter Hall Long WALE REIT had a gross margin of 83.43% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Charter Hall Long WALE REIT was -3.00% per year.


Charter Hall Long WALE REIT Gross Margin % Historical Data

The historical data trend for Charter Hall Long WALE 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.

* Premium members only.

Charter Hall Long WALE REIT Annual Data
Trend Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
Gross Margin %
Premium Member Only Premium Member Only 76.10 73.30 73.04 72.58 70.51

Charter Hall Long WALE REIT Semi-Annual Data
Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
Gross Margin % 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 83.55 61.79 84.56 56.07 83.43

Competitive Comparison

For the REIT - Diversified subindustry, Charter Hall Long WALE 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.


Charter Hall Long WALE REIT Gross Margin % Distribution

For the REITs industry and Real Estate sector, Charter Hall Long WALE REIT's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Charter Hall Long WALE REIT's Gross Margin % falls into.



Charter Hall Long WALE REIT Gross Margin % Calculation

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

Charter Hall Long WALE REIT's Gross Margin for the fiscal year that ended in Jun. 2023 is calculated as

Gross Margin % (A: Jun. 2023 )=Gross Profit (A: Jun. 2023 ) / Revenue (A: Jun. 2023 )
=156.2 / 221.476
=(Revenue - Cost of Goods Sold) / Revenue
=(221.476 - 65.303) / 221.476
=70.51 %

Charter Hall Long WALE REIT'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 )
=91.9 / 110.185
=(Revenue - Cost of Goods Sold) / Revenue
=(110.185 - 18.255) / 110.185
=83.43 %

* 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.


Charter Hall Long WALE REIT  (ASX:CLW) 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

Charter Hall Long WALE REIT had a gross margin of 83.43% 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.


Charter Hall Long WALE REIT Gross Margin % Related Terms

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Charter Hall Long WALE REIT (ASX:CLW) Business Description

Traded in Other Exchanges
Address
No. 1 Martin Place, Level 20, Sydney, NSW, AUS, 2000
Charter Hall Long Wale REIT is a diversified property trust, with assets in Australia and New Zealand. Occupancy is near 100%, and weighted average lease length is a long 11.2 years (as at June 30, 2023). More than half the REIT's leases are triple-net, where tenants pay rates, maintenance and most outgoings. The REIT's about AUD 7 billion portfolio of 550 properties spans offices, industrial, retail, social infrastructure, and agricultural logistics assets, with about 79% of the portfolio on Australia's eastern seaboard. Leases are evenly spread between CPI-linked (7.2% average rent increase expected in 2023) and fixed uplifts (average 3.1% uplift expected). The tenant profile is strong, with almost all occupiers being government, multinational or national businesses.