Harbor Custom Development (Harbor Custom Development) Gross Margin %

: -154.77% (As of Dec. 2023)

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Gross Margin % is calculated as gross profit divided by its revenue. Harbor Custom Development's Gross Profit for the three months ended in Dec. 2023 was $-38.22 Mil. Harbor Custom Development's Revenue for the three months ended in Dec. 2023 was $24.70 Mil. Therefore, Harbor Custom Development's Gross Margin % for the quarter that ended in Dec. 2023 was -154.77%.

The historical rank and industry rank for Harbor Custom Development's Gross Margin % or its related term are showing as below:

HCDIQ' s Gross Margin % Range Over the Past 10 Years
Min: -86.8 Med: 7.33 Max: 30.31
Current: -86.8

During the past 6 years, the highest Gross Margin % of Harbor Custom Development was 30.31%. The lowest was -86.80%. And the median was 7.33%.

HCDIQ's Gross Margin % is ranked worse than
98.97% of 1655 companies
in the Real Estate industry
Industry Median: 36.53 vs HCDIQ: -86.80

Harbor Custom Development had a gross margin of -154.77% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Harbor Custom Development was 0.00% per year.

Harbor Custom Development Gross Margin % Historical Data

The historical data trend for Harbor Custom Development'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.

Harbor Custom Development Annual Data

Trend

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

10.69

3.97

30.31

-0.82

-86.80

Harbor Custom Development Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Gross Margin %																-104.48	-22.26	-14.71	-149.02	-154.77

Competitive Comparison

For the Real Estate - Development subindustry, Harbor Custom Development'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.

Harbor Custom Development Gross Margin % Distribution

For the Real Estate industry and Real Estate sector, Harbor Custom Development's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Harbor Custom Development's Gross Margin % falls into.

Harbor Custom Development Gross Margin % Calculation

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

Harbor Custom Development'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 )
	=	-51.4	/	59.257
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(59.257 - 110.692)	/	59.257
	=	-86.80 %

Harbor Custom Development'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 )
	=	-38.2	/	24.695
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(24.695 - 62.916)	/	24.695
	=	-154.77 %

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.

Harbor Custom Development (OTCPK:HCDIQ) 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

Harbor Custom Development had a gross margin of -154.77% 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.

Harbor Custom Development Gross Margin % Related Terms

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Harbor Custom Development (Harbor Custom Development) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » Real Estate » Harbor Custom Development Inc (OTCPK:HCDIQ) » Definitions » Gross Margin %

Traded in Other Exchanges

N/A

Address

1201 Pacific Avenue, Suite 1200, Tacoma, WA, USA, 98402

Website

https://www.harborcustomhomes.com

Harbor Custom Development Inc is a real estate development company. The company's segment includes Homes; Developed lots; Entitled land; Multi-family; Fee Build and other. It generates maximum revenue froem the Homes segment.

Executives

D. David Chandler	director	C/O VIEWRAY INCORPORATED, 2 THERMO FISHER WAY, OAKWOOD VILLAGE OH 44146
Yoshi Niino	officer: Chief Accounting Officer	1201 PACIFIC AVE., SUITE 1200, TACOMA WA 98402
James Charles Burton	officer: Secretary	1201 PACIFIC AVE., SUITE 1200, TACOMA WA 98402
Walter Frederick Walker	director	14419 GREENWOOD AVE. N, STE A 418, SEATTLE WA 98133
Richard Schmidtke	director, officer: Chief Financial Officer	11505 BURNHAM DRIVE., SUITE 301, GIG HARBOR WA 98332
Dennis Andrew Wong	director	1511 NORTH WESTSHORE BOULEVARD, SUITE 870, TAMPA FL 33607
Chris John Corr	director	11505 BURNHAM DRIVE, SUITE 301, GIG HARBOR WA 98332
Jeffrey Habersetzer	officer: Secretary	11505 BURNHAM DRIVE., SUITE 301, GIG HARBOR WA 98332
Lance Brown	officer: Chief Financial Officer	400 GALLERIA PKWY SE,, SUITE 1760, ATLANTA GA 30339
Timothy J. O'sullivan	officer: Interim CFO	11505 BURNHAM DRIVE, SUITE 301, GIG HARBOR WA 98332
Karen Bryant	director	11505 BURNHAM DRIVE, SUITE 301, GIG HARBOR WA 98332
Swets Larry G Jr	director	105 S. MAPLE ST., ITASCA IL 60143
Sterling Griffin	director, 10 percent owner, officer: Chief Executive Officer	11505 BURNHAM DRIVE., SUITE 301, GIG HARBOR WA 98332
Lynda Meadows	officer: Chief Financial Officer	11505 BURNHAM DRIVE., SUITE 301, GIG HARBOR WA 98332
Anita Fritz	officer: Vice President	11505 BURNHAM DRIVE., SUITE 301, GIG HARBOR WA 98332