Gross Margin % is calculated as gross profit divided by its revenue. NorthStar Realty Finance's Gross Profit for the
three
months ended in Sep. 2016 was $259.73 Mil. NorthStar Realty Finance's Revenue for the
three
months ended in Sep. 2016 was $496.72 Mil. Therefore, NorthStar Realty Finance's Gross Margin % for the quarter that ended in Sep. 2016 was 52.29%.
The historical rank and industry rank for NorthStar Realty Finance's Gross Margin % or its related term are showing as below:
NRFPRC.PFD'
s Gross Margin % Range Over the Past 10 Years
Min: -210 Med: 64.59 Max: 95.85
Current: 52.85
During the past 13 years, the highestGross Margin % of NorthStar Realty Finance was 95.85%. The lowest was -210.00%. And the median was 64.59%.
NRFPRC.PFD's Gross Margin % is not ranked
in the REITs industry.
Industry Median: 68.745
vs NRFPRC.PFD: 52.85
NorthStar Realty Finance had a gross margin of 52.29% for the quarter that ended in Sep. 2016 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for NorthStar Realty Finance was -0.30% per year.
NorthStar Realty Finance Gross Margin % Historical Data
The historical data trend for NorthStar Realty Finance'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.
Competitive Comparison of NorthStar Realty Finance's Gross Margin %
For the REIT - Retail subindustry, NorthStar Realty Finance'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.
NorthStar Realty Finance's Gross Margin % Distribution in the REITs Industry
For the REITs industry and Real Estate sector, NorthStar Realty Finance's Gross Margin % distribution charts can be found below:
* The bar in red indicates where NorthStar Realty Finance'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
NorthStar Realty Finance had a gross margin of 52.29% for the quarter that ended in Sep. 2016 => 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.
NorthStar Realty Finance Gross Margin % Related Terms
Thank you for viewing the detailed overview of NorthStar Realty Finance's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
NorthStar Realty Finance (NorthStar Realty Finance) Business Description
Northstar Realty Finance Corp is a Maryland corporation formed in October 2003. The Company is an internally managed REIT, and is a diversified commercial real estate investment and asset management company. NorthStar Realty Finance Limited Partnership holds all of the Company's assets and conducts its operation directly or indirectly. The Company invests in multiple asset classes across commercial real estate. These investments are in the form of acquiring real estate, originating or acquiring senior or subordinate loans, as well as CRE investments, both in the United States and internationally. The asset management business is focused on raising and managing capital on a fee basis from alternative sources, which includes non-traded real estate investment trusts, and sponsoring other companies through joint ventures and partnerships, such as RXR Realty, LLC, or RXR Realty. The Company's commercial real estate debt business is focused on originating, structuring, acquiring and managing senior and subordinate debt investments secured by commercial real estate, including first mortgage loans, subordinate interests, mezzanine loans, credit tenant loans and other loans, including preferred equity interests in borrowers who own such properties. The Company competes with many third parties engaged in real estate investment activities including publicly-traded REITs, non-traded REITs, insurance companies, commercial and investment banking firms, private equity funds. The Company is subject to supervision and regulation by state and federal governmental authorities and is subject to various laws and judicial and administrative decisions imposing various requirements and restrictions.
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