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Ashford Hospitality Trust (Ashford Hospitality Trust) Gross Margin % : 20.08% (As of Dec. 2023)


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What is Ashford Hospitality Trust Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Ashford Hospitality Trust's Gross Profit for the three months ended in Dec. 2023 was $64.25 Mil. Ashford Hospitality Trust's Revenue for the three months ended in Dec. 2023 was $319.88 Mil. Therefore, Ashford Hospitality Trust's Gross Margin % for the quarter that ended in Dec. 2023 was 20.08%.


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

AHTpD.PFD' s Gross Margin % Range Over the Past 10 Years
Min: -11.05   Med: 26.76   Max: 30.8
Current: 23.62


During the past 13 years, the highest Gross Margin % of Ashford Hospitality Trust was 30.80%. The lowest was -11.05%. And the median was 26.76%.

AHTpD.PFD's Gross Margin % is ranked worse than
96.69% of 634 companies
in the REITs industry
Industry Median: 68.745 vs AHTpD.PFD: 23.62

Ashford Hospitality Trust had a gross margin of 20.08% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Ashford Hospitality Trust was 0.00% per year.


Ashford Hospitality Trust Gross Margin % Historical Data

The historical data trend for Ashford Hospitality 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.

* Premium members only.

Ashford Hospitality Trust Gross Margin % Chart

Ashford Hospitality Trust Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 26.77 -11.05 13.46 23.18 23.62

Ashford Hospitality 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 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 21.39 22.57 27.63 23.51 20.08

Competitive Comparison of Ashford Hospitality Trust's Gross Margin %

For the REIT - Hotel & Motel subindustry, Ashford Hospitality 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.


Ashford Hospitality Trust's Gross Margin % Distribution in the REITs Industry

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

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



Ashford Hospitality Trust Gross Margin % Calculation

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

Ashford Hospitality 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 )
=322.9 / 1367.533
=(Revenue - Cost of Goods Sold) / Revenue
=(1367.533 - 1044.59) / 1367.533
=23.62 %

Ashford Hospitality 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 )
=64.2 / 319.884
=(Revenue - Cost of Goods Sold) / Revenue
=(319.884 - 255.639) / 319.884
=20.08 %

* 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.


Ashford Hospitality Trust  (NYSE:AHTpD.PFD) 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

Ashford Hospitality Trust had a gross margin of 20.08% for the quarter that ended in Dec. 2023 => Competition eroding margins


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.


Ashford Hospitality Trust Gross Margin % Related Terms

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


Ashford Hospitality Trust (Ashford Hospitality Trust) Business Description

Address
14185 Dallas Parkway, Suite 1200, Dallas, TX, USA, 75254
Ashford Hospitality Trust Inc. is a real estate investment trust that invests in full-service upscale and upper-upscale hotel properties in the U.S. The company owns and operates its assets through its operating partnership, Ashford Hospitality Limited Partnership. All of its hotels are located across the U.S. and operate under the Marriott, Hilton, Hyatt, Crowne Plaza, and Sheraton brands. Ashford's sole segment is Direct Hotel Investments, through which it owns hotels by acquisition or development. Ashford also provides rest estate investment services, such as mezzanine financing, first mortgage financing, and sales-leaseback transactions. Its revenue streams include Room revenue, Food and beverage revenue, and Other revenue. Room revenue accounts for the majority of total revenue.