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Forest City Realty Trust Inc  (NYSE:FCE.A) Gross Margin %: 53.06% (As of Jun. 2017)

Gross Margin % is calculated as gross profit divided by its revenue. Forest City Realty Trust Inc's Gross Profit for the three months ended in Jun. 2017 was $125.5 Mil. Forest City Realty Trust Inc's Revenue for the three months ended in Jun. 2017 was $236.4 Mil. Therefore, Forest City Realty Trust Inc's Gross Margin % for the quarter that ended in Jun. 2017 was 53.06%.


NYSE:FCE.A' s Gross Margin % Range Over the Past 10 Years
Min: 38.38   Max: 51.95
Current: 51.95

38.38
51.95

During the past 13 years, the highest Gross Margin % of Forest City Realty Trust Inc was 51.95%. The lowest was 38.38%. And the median was 41.32%.

NYSE:FCE.A's Gross Margin % is ranked lower than
85% of the 597 Companies
in the Global industry.

( Industry Median: 69.58 vs. NYSE:FCE.A: 51.95 )

Forest City Realty Trust Inc had a gross margin of 53.06% for the quarter that ended in Jun. 2017 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Forest City Realty Trust Inc was 4.50% per year.


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

Forest City Realty Trust Inc Annual Data

Jan07 Jan08 Jan09 Jan10 Jan11 Jan12 Jan13 Dec14 Dec15 Dec16
Gross Margin % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 38.38 41.91 40.69 46.31 50.60

Forest City Realty Trust Inc Quarterly Data

Oct12 Jan13 Mar13 Apr13 Jul13 Oct13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17
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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 52.12 51.13 52.51 50.98 53.06

Competitive Comparison
* 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.


Calculation

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

Forest City Realty Trust Inc's Gross Margin for the fiscal year that ended in Dec. 2016 is calculated as

Gross Margin % (A: Dec. 2016 )=Gross Profit (A: Dec. 2016 ) / Revenue (A: Dec. 2016 )
=470.3 / 929.483
=(Revenue - Cost of Goods Sold) / Revenue
=(929.483 - 459.185) / 929.483
=50.60 %

Forest City Realty Trust Inc's Gross Margin for the quarter that ended in Jun. 2017 is calculated as


Gross Margin % (Q: Jun. 2017 )=Gross Profit (Q: Jun. 2017 ) / Revenue (Q: Jun. 2017 )
=-111 / 236.442
=(Revenue - Cost of Goods Sold) / Revenue
=(236.442 - 110.975) / 236.442
=53.06 %

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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.


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

Forest City Realty Trust Inc had a gross margin of 53.06% for the quarter that ended in Jun. 2017 => 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.


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