Simon Property Group (Simon Property Group) Gross Margin % : 83.27% (As of Dec. 2023)

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What is Simon Property Group Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Simon Property Group's Gross Profit for the three months ended in Dec. 2023 was $1,272 Mil. Simon Property Group's Revenue for the three months ended in Dec. 2023 was $1,527 Mil. Therefore, Simon Property Group's Gross Margin % for the quarter that ended in Dec. 2023 was 83.27%.

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

SPG' s Gross Margin % Range Over the Past 10 Years
Min: 80.75 Med: 81.86 Max: 82.27
Current: 81.83

During the past 13 years, the highest Gross Margin % of Simon Property Group was 82.27%. The lowest was 80.75%. And the median was 81.86%.

SPG's Gross Margin % is ranked better than
74.76% of 634 companies
in the REITs industry
Industry Median: 68.745 vs SPG: 81.83

Simon Property Group had a gross margin of 83.27% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Simon Property Group was -0.20% per year.

Simon Property Group Gross Margin % Historical Data

The historical data trend for Simon Property Group'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.

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Simon Property Group Gross Margin % Chart

Simon Property Group Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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82.25

80.75

81.02

81.08

81.83

Simon Property Group 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															80.97	81.86	81.52	80.53	83.27

Competitive Comparison of Simon Property Group's Gross Margin %

For the REIT - Retail subindustry, Simon Property Group'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.

Simon Property Group's Gross Margin % Distribution in the REITs Industry

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

* The bar in red indicates where Simon Property Group's Gross Margin % falls into.

Simon Property Group Gross Margin % Calculation

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

Simon Property Group'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 )
	=	4630.5	/	5658.836
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(5658.836 - 1028.386)	/	5658.836
	=	81.83 %

Simon Property Group'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 )
	=	1271.9	/	1527.438
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(1527.438 - 255.544)	/	1527.438
	=	83.27 %

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.

Simon Property Group (NYSE:SPG) 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

Simon Property Group had a gross margin of 83.27% 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.

Simon Property Group Gross Margin % Related Terms

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Simon Property Group (Simon Property Group) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » REITs » Simon Property Group Inc (NYSE:SPG) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

SPGpJ.PFD:USA SPG:Mexico 1SPG:Italy SQI:Germany SQI:Germany SIMN34:Brazil SPGR:Austria

Address

225 West Washington Street, Indianapolis, IN, USA, 46204

Website

https://www.simon.com

Simon Property Group is the second-largest real estate investment trust in the United States. Its portfolio includes an interest in 231 properties: 136 traditional malls, 70 premium outlets, 14 Mills centers (a combination of a traditional mall, outlet center, and big-box retailers), 6 lifestyle centers, and 5 other retail properties. Simon's portfolio averaged $693 in sales per square foot over the 12 months prior to the pandemic. The company also owns a 21% interest in Klepierre, a European retail company with investments in shopping centers in 16 countries, and joint venture interests in 33 premium outlets across 11 countries.

Executives

Larry C Glasscock	director	SYSCO CORPORATION, 1390 ENCLAVE PARKWAY, HOUSTON TX 77077
Randall J Lewis	director	WELLPOINT, INC, 120 MONUMENT CIRCLE, INDIANAPOLIS IN 46204
Allan B Hubbard	director	ANTHEM INC., 120 MONUMENT CIRCLE, INDIANAPOLIS IN 46204
Glyn Aeppel	director	6 WHIPPOORWILL LANE, WESTPORT CT 06880
Gary M Rodkin	director	700 ANDERSON HILL RD, PURCHASE NJ 10577
Reuben S Leibowitz	director	466 LEXINGTON AVENUE 10TH FL, NEW YORK NY 10017
Marta R Stewart	director	C/O NORFOLK SOUTHERN CORP, THREE COMMERCIAL PL, NORFOLK VA 23510-9219
Daniel C. Smith	director	3000 GODFREY GRADUATE AND EXECUTIVE CTR., 1275 EAST TENTH STREET, BLOOMINGTON IN 47405-1703
Stefan M Selig	director	2 EAST 70TH STREET, NEW YORK NY 10021
Peggy Fang Roe	director	100 COMMERCE LANE, APT. 1401, BETHESDA MD 20814
Karen N Horn	director
Smith J Albert Jr	director	111 MONUMENT CIRCLE, IN1-0175, INDIANAPOLIS IN 46204
Matthew A Jackson	officer: SVP, Assistant Treasurer	225 W. WASHINGTON ST., INDIANAPOLIS IN 46256
Kevin M Kelly	officer: Asst. General Counsel/Sec.	225 W. WASHINGTON ST., INDIANAPOLIS IN 46204
Donald G Frey	officer: EVP, Treasurer	225 W. WASHINGTON ST., INDIANAPOLIS IN 46204