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Invitation Homes (Invitation Homes) Gross Margin % : 59.35% (As of Dec. 2023)


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What is Invitation Homes Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Invitation Homes's Gross Profit for the three months ended in Dec. 2023 was $371 Mil. Invitation Homes's Revenue for the three months ended in Dec. 2023 was $624 Mil. Therefore, Invitation Homes's Gross Margin % for the quarter that ended in Dec. 2023 was 59.35%.


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

INVH' s Gross Margin % Range Over the Past 10 Years
Min: 41.83   Med: 58.65   Max: 61.05
Current: 59.87


During the past 10 years, the highest Gross Margin % of Invitation Homes was 61.05%. The lowest was 41.83%. And the median was 58.65%.

INVH's Gross Margin % is ranked worse than
70.66% of 634 companies
in the REITs industry
Industry Median: 68.745 vs INVH: 59.87

Invitation Homes had a gross margin of 59.35% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Invitation Homes was 0.80% per year.


Invitation Homes Gross Margin % Historical Data

The historical data trend for Invitation Homes'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.

Invitation Homes Gross Margin % Chart

Invitation Homes 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 58.54 59.45 61.05 60.94 59.87

Invitation Homes 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 59.92 60.66 60.46 59.06 59.35

Competitive Comparison of Invitation Homes's Gross Margin %

For the REIT - Residential subindustry, Invitation Homes'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.


Invitation Homes's Gross Margin % Distribution in the REITs Industry

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

* The bar in red indicates where Invitation Homes's Gross Margin % falls into.



Invitation Homes Gross Margin % Calculation

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

Invitation Homes'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 )
=1456.1 / 2432.278
=(Revenue - Cost of Goods Sold) / Revenue
=(2432.278 - 976.144) / 2432.278
=59.87 %

Invitation Homes'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 )
=370.5 / 624.321
=(Revenue - Cost of Goods Sold) / Revenue
=(624.321 - 253.788) / 624.321
=59.35 %

* 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.


Invitation Homes  (NYSE:INVH) 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

Invitation Homes had a gross margin of 59.35% for the quarter that ended in Dec. 2023 => 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.


Invitation Homes Gross Margin % Related Terms

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


Invitation Homes (Invitation Homes) Business Description

Traded in Other Exchanges
Address
1717 Main Street, Suite 2000, Dallas, TX, USA, 75201
Invitation Homes owns a portfolio of nearly 83,000 single-family rental homes. The company focuses on owning homes in the starter and move-up segments of the housing market with an average sale price around $300,000 and generally less than 1,800 square feet. The portfolio is spread across 16 target markets that feature high employment and household formation growth with over 70% of the portfolio in the Western U.S. and Florida; 15 of the 16 markets featuring average rents lower than homeownership costs.
Executives
Scott G. Eisen officer: EVP, Chief Investment Officer 1717 MAIN STREET, SUITE 2000, DALLAS TX 75201
Jonathan S. Olsen officer: EVP & CFO 1717 MAIN STREET, SUITE 2000, DALLAS TX 75201
Keith D Taylor director 301 VELOCITY WAY, 5TH FLOOR, FOSTER CITY CA 94404
Frances Aldrich Sevilla-sacasa director 3 GREENWAY PLAZA, SUITE 1300, HOUSTON TX 77046
Dallas B Tanner officer: See Remarks C/O INVITATION HOMES INC., 1717 MAIN STREET, SUITE 2000, DALLAS TX 75201
Janice L. Sears director 1100 PARK PLACE, SUITE 200, SAN MATEO CA 94403
Charles D. Young officer: Chief Operating Officer C/O STARWOOD WAYPOINT RESIDENTIAL TRUST, 1999 HARRISON STREET, 24TH FLOOR, OAKLAND CA 94612
Bryce Blair director
Ernest Michael Freedman officer: See Remarks 1717 MAIN STREET, SUITE 2000, DALLAS TX 75201
Kimberly K Norrell officer: See Remarks C/O INVITATION HOMES INC., 1717 MAIN STREET, SUITE 2000, DALLAS TX 75201
Roizen Jo Ann Heidi director
Joseph D Margolis director C/O ARSENAL REAL ESTATE FUNDS, 117 ON THE GREEN, 67 PARK PLACE EAST, MORRISTOWN NJ 07960
Brep Ih6 Holdings Llc 10 percent owner C/O THE BLACKSTONE GROUP L.P., 345 PARK AVE., NEW YORK NY 10154
Ih3 Holdco Gp Llc 10 percent owner C/O THE BLACKSTONE GROUP L.P., 345 PARK AVE., NEW YORK NY 10154
Brep Vii-nq Side-by-side Gp L.l.c. 10 percent owner C/O THE BLACKSTONE GROUP L.P., 345 PARK AVE., NEW YORK NY 10154