Diversified Healthcare Trust (Diversified Healthcare Trust) Gross Margin % : 16.08% (As of Dec. 2023)

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What is Diversified Healthcare Trust Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Diversified Healthcare Trust's Gross Profit for the three months ended in Dec. 2023 was $58 Mil. Diversified Healthcare Trust's Revenue for the three months ended in Dec. 2023 was $362 Mil. Therefore, Diversified Healthcare Trust's Gross Margin % for the quarter that ended in Dec. 2023 was 16.08%.

Warning Sign:

Diversified Healthcare Trust gross margin has been in long-term decline. The average rate of decline per year is -26.1%.

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

DHC' s Gross Margin % Range Over the Past 10 Years
Min: 13.59 Med: 56.28 Max: 62.21
Current: 16.75

During the past 13 years, the highest Gross Margin % of Diversified Healthcare Trust was 62.21%. The lowest was 13.59%. And the median was 56.28%.

DHC's Gross Margin % is ranked worse than
97.32% of 634 companies
in the REITs industry
Industry Median: 68.745 vs DHC: 16.75

Diversified Healthcare Trust had a gross margin of 16.08% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Diversified Healthcare Trust was -26.10% per year.

Diversified Healthcare Trust Gross Margin % Historical Data

The historical data trend for Diversified Healthcare 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.

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Diversified Healthcare Trust Gross Margin % Chart

Diversified Healthcare Trust Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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52.98

24.24

21.07

13.59

16.75

Diversified Healthcare 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															15.35	17.33	17.33	16.29	16.08

Competitive Comparison of Diversified Healthcare Trust's Gross Margin %

For the REIT - Healthcare Facilities subindustry, Diversified Healthcare 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.

Diversified Healthcare Trust's Gross Margin % Distribution in the REITs Industry

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

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

Diversified Healthcare Trust Gross Margin % Calculation

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

Diversified Healthcare 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 )
	=	236.2	/	1410.308
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(1410.308 - 1174.151)	/	1410.308
	=	16.75 %

Diversified Healthcare 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 )
	=	58.1	/	361.535
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(361.535 - 303.411)	/	361.535
	=	16.08 %

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.

Diversified Healthcare Trust (NAS:DHC) 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

Diversified Healthcare Trust had a gross margin of 16.08% 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.

Diversified Healthcare Trust Gross Margin % Related Terms

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

Diversified Healthcare Trust (Diversified Healthcare Trust) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » REITs » Diversified Healthcare Trust (NAS:DHC) » Definitions » Gross Margin %

Comparable Companies

GMRE CHTH UHT CHCT HLTC CVMCA NHHS STRW LTC AHR WELL VTR DOC OHI HR SBRA CTRE XBRU:AED MPW NHI

Traded in Other Exchanges

SNF:Germany

Address

255 Washington Street, Suite 300, Two Newton Place, Newton, MA, USA, 02458-1634

Website

https://www.dhcreit.com

Diversified Healthcare Trust is a real estate investment trust that focuses on healthcare-related properties, including life science estates, medical offices, and senior living communities. It acquires and owns properties and is engaged in the development and implementation of medical services and technologies. It operates through two segments: its office portfolio and its senior housing operating portfolio. The office portfolio includes medical office properties leased to medical-related businesses and life sciences properties. The SHOP segment runs communities that offer multiple types of residential care, ranging from independent living to nursing services. DHT operates across the United States and the majority of its revenue derives from rents and medical programs.

Executives

Matthew C. Brown	officer: CFO and Treasurer	C/O OFFICE PROPERTIES INCOME TRUST, TWO NEWTON PLACE, 255 WASHINGTON STREET, NEWTON MA 02458
Phyllis M. Hollis	director	TWO NEWTON PLACE, 255 WASHINGTON STREET, SUITE 300, NEWTON MA 02458-1634
David A Pierce	director	BOSTON SCIENTIFIC CORPORATION, 300 BOSTON SCIENTIFIC WAY, MARLBOROUGH MA 01752-1234
John L Harrington	director	C/O THE RMR GROUP LLC, TWO NEWTON PL., 255 WASH. ST., STE. 300, NEWTON MA 02458
Daniel F. Lepage	director	C/O THE RMR GROUP LLC, 255 WASHINGTON STREET, SUITE 300, NEWTON MA 02458
Jennifer F. Mintzer	officer: President and COO	C/O DIVERSIFIED HEALTHCARE TRUST, TWO NEWTON PL., 255 WASHINGTON STREET, NEWTON MA 02458
Jennifer B Clark	director
Siedel Richard W. Jr.	officer: Treasurer and C.F.O.	C/O THE RMR GROUP LLC, TWO NEWTON PL., 255 WASH. ST., STE. 300, NEWTON MA 02458
Lisa Harris Jones	director	C/O THE RMR GROUP LLC, TWO NEWTON PL., 255 WASH. ST., STE. 300, NEWTON MA 02458
Jeffrey P. Somers	director	C/O THE RMR GROUP LLC, TWO NEWTON PL., 255 WASH. ST., STE. 300, NEWTON MA 02458
Doyle Richard A Jr	officer: Treasurer and CFO	C/O FIVE STAR QUALITY CARE, INC., 400 CENTRE STREET, NEWTON MA 02458
Adam D. Portnoy	director	C/O THE RMR GROUP LLC, TWO NEWTON PL., 255 WASH. ST., STE. 300, NEWTON MA 02458
John R Hoadley	officer: Treasurer & CFO
David J Hegarty	officer: President & COO	C/O THE RMR GROUP LLC, TWO NEWTON PL., 255 WASH. ST., STE. 300, NEWTON MA 02458
Frank J Bailey	director	C/O REIT MANAGEMENT & RESEARCH LLC, 400 CENTRE STREET, NEWTON MA 02458