Market Cap : 11.13 B | Enterprise Value : 14.95 B | Price-to-FFO : | PB Ratio : 1.76 |
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Gross Margin % is calculated as gross profit divided by its revenue. Host Hotels & Resorts's Gross Profit for the three months ended in Dec. 2020 was $-77 Mil. Host Hotels & Resorts's Revenue for the three months ended in Dec. 2020 was $267 Mil. Therefore, Host Hotels & Resorts's Gross Margin % for the quarter that ended in Dec. 2020 was -28.84%.
During the past 13 years, the highest Gross Margin % of Host Hotels & Resorts was 33.21%. The lowest was -9.88%. And the median was 30.96%.
NAS:HST's Gross Margin % is ranked lower thanHost Hotels & Resorts had a gross margin of -28.84% for the quarter that ended in Dec. 2020 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Host Hotels & Resorts was 0.00% per year.
* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.
* The bar in red indicates where Host Hotels & Resorts's Gross Margin % falls into.
Gross Margin is the percentage of Gross Profit out of sales or Revenue.
Host Hotels & Resorts's Gross Margin for the fiscal year that ended in Dec. 2020 is calculated as
Gross Margin % (A: Dec. 2020 ) | = | Gross Profit (A: Dec. 2020 ) | / | Revenue (A: Dec. 2020 ) |
= | -160 | / | 1620 | |
= | (Revenue - Cost of Goods Sold) | / | Revenue | |
= | (1620 - 1780) | / | 1620 | |
= | -9.88 % |
Host Hotels & Resorts's Gross Margin for the quarter that ended in Dec. 2020 is calculated as
Gross Margin % (Q: Dec. 2020 ) | = | Gross Profit (Q: Dec. 2020 ) | / | Revenue (Q: Dec. 2020 ) |
= | -77 | / | 267 | |
= | (Revenue - Cost of Goods Sold) | / | Revenue | |
= | (267 - 344) | / | 267 | |
= | -28.84 % |
* 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.
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
Host Hotels & Resorts had a gross margin of -28.84% for the quarter that ended in Dec. 2020 => No sustainable competitive advantage
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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