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Preferred Apartment Communities Gross Margin %

: 65.56% (As of Mar. 2022)
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Gross Margin % is calculated as gross profit divided by its revenue. Preferred Apartment Communities's Gross Profit for the three months ended in Mar. 2022 was $68.8 Mil. Preferred Apartment Communities's Revenue for the three months ended in Mar. 2022 was $104.9 Mil. Therefore, Preferred Apartment Communities's Gross Margin % for the quarter that ended in Mar. 2022 was 65.56%.

Warning Sign:

Preferred Apartment Communities Inc gross margin has been in long-term decline. The average rate of decline per year is -1.2%.


The historical rank and industry rank for Preferred Apartment Communities's Gross Margin % or its related term are showing as below:

APTS' s Gross Margin % Range Over the Past 10 Years
Min: 67.31   Med: 71.38   Max: 77.53
Current: 67.31


During the past 12 years, the highest Gross Margin % of Preferred Apartment Communities was 77.53%. The lowest was 67.31%. And the median was 71.38%.

APTS's Gross Margin % is ranked worse than
54.08% of 649 companies
in the REITs industry
Industry Median: 68.66 vs APTS: 67.31

Preferred Apartment Communities had a gross margin of 65.56% for the quarter that ended in Mar. 2022 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Preferred Apartment Communities was -1.20% per year.


Preferred Apartment Communities Gross Margin % Historical Data

The historical data trend for Preferred Apartment Communities'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.

Preferred Apartment Communities Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Gross Margin %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 71.84 67.91 67.56 67.84 67.82

Preferred Apartment Communities Quarterly Data
Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22
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 67.75 68.89 68.34 66.17 65.56

Competitive Comparison

For the REIT - Diversified subindustry, Preferred Apartment Communities'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.

   

Preferred Apartment Communities Gross Margin % Distribution

For the REITs industry and Real Estate sector, Preferred Apartment Communities's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Preferred Apartment Communities's Gross Margin % falls into.



Preferred Apartment Communities Gross Margin % Calculation

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

Preferred Apartment Communities's Gross Margin for the fiscal year that ended in Dec. 2021 is calculated as

Gross Margin % (A: Dec. 2021 )=Gross Profit (A: Dec. 2021 ) / Revenue (A: Dec. 2021 )
=306 / 451.142
=(Revenue - Cost of Goods Sold) / Revenue
=(451.142 - 145.158) / 451.142
=67.82 %

Preferred Apartment Communities's Gross Margin for the quarter that ended in Mar. 2022 is calculated as


Gross Margin % (Q: Mar. 2022 )=Gross Profit (Q: Mar. 2022 ) / Revenue (Q: Mar. 2022 )
=68.8 / 104.88
=(Revenue - Cost of Goods Sold) / Revenue
=(104.88 - 36.116) / 104.88
=65.56 %

* 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.


Preferred Apartment Communities  (NYSE:APTS) 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

Preferred Apartment Communities had a gross margin of 65.56% for the quarter that ended in Mar. 2022 => 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.


Preferred Apartment Communities Gross Margin % Related Terms

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


Preferred Apartment Communities Business Description

Preferred Apartment Communities logo
Traded in Other Exchanges
Address
3284 Northside Parkway NW, Suite 150, Atlanta, GA, USA, 30327
Preferred Apartment Communities Inc is a real estate investment trust that acquires and operates multifamily properties in select targeted markets throughout the United States. It operates through the following segments: The Multifamily Communities segment being the highest revenue generating segment; Financing segment refers to the portfolio of real estate loans, bridge loans, other instruments, and other real estate related assets; New Market Properties segment covers a portfolio of grocery-anchored shopping centers, as well as the financial results from the retail real estate loans; and Preferred Office properties segment relates to the office buildings.
Executives
Sherman Jeffrey David officer: PRESIDENT - MULTIFAMILY 3284 NORTHSIDE PARKWAY NW SUITE 150 ATLANTA GA 30327
Aide Michael officer: PRESIDENT - RETAIL 3284 NORTHSIDE PARKWAY NW SUITE 150 ATLANTA GA 30327
Isakson John A officer: CHIEF FINANCIAL OFFICER 3284 NORTHSIDE PARKWAY, NW, SUITE 150 ATLANTA GA 30327
Sprain Jeffrey R officer: EVP, GENERAL COUNSEL AND SEC. 3284 NORTHSIDE PARKWAY, NW, SUITE 150 ATLANTA GA 30327
Jackson Daphne Bryson director 3284 NORTHSIDE PARKWAY NW SUITE 150 ATLANTA GA 30327
Cannon John M director 3284 NORTHSIDE PARKWAY NW SUITE 150 ATLANTA GA 30327
Dupree Parker Boone officer: President - Office 3284 NORTHSIDE PARKWAY NW SUITE 150 ATLANTA GA 30327
Finley Sara director ONE CVS DRIVE WOONSOCKET RI 02895
Wiens John M. director 3284 NORTHSIDE PARKWAY NW STE. 150 ATLANTA GA 30327
Murphy Joel T director, officer: See Remarks 2500 WINDY RIDGE PARKWAY SUITE 1600 ATLANTA GA 30339
Gresham William J Jr director 1010 RICHMOND HILL DRIVE MARIETTA GA 30068
Williams Opportunity Fund Llc 10 percent owner 3625 CUMBERLAND BLVD SUITE 400 ATLANTA GA 30339
Williams Realty Fund I Llc 10 percent owner 3625 CUMBERLAND BLVD STE 400 ATLANTA GA 30339
Dupree Daniel M director 2500 WINDY RIDGE PARKWAY SUITE 1600 ATLANTA GA 30339
Leseman William F officer: See Remarks 3625 CUMBERLAND BOULDEVARD SUITE 400 ATLANTA GA 30339

Preferred Apartment Communities Headlines

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