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 highestGross 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 %
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 %
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.
* 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.
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 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.
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