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Prologis (Prologis) Gross Margin %

: 74.22% (As of Dec. 2023)
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Gross Margin % is calculated as gross profit divided by its revenue. Prologis's Gross Profit for the three months ended in Dec. 2023 was $1,402 Mil. Prologis's Revenue for the three months ended in Dec. 2023 was $1,889 Mil. Therefore, Prologis's Gross Margin % for the quarter that ended in Dec. 2023 was 74.22%.


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

PLD' s Gross Margin % Range Over the Past 10 Years
Min: 69.01   Med: 72.73   Max: 74.94
Current: 74.94


During the past 13 years, the highest Gross Margin % of Prologis was 74.94%. The lowest was 69.01%. And the median was 72.73%.

PLD's Gross Margin % is ranked better than
63.19% of 633 companies
in the REITs industry
Industry Median: 68.71 vs PLD: 74.94

Prologis had a gross margin of 74.22% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Prologis was 0.70% per year.


Prologis Gross Margin % Historical Data

The historical data trend for Prologis'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.

Prologis Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 72.41 73.64 73.77 74.74 74.94

Prologis Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 74.95 72.62 78.02 73.88 74.22

Competitive Comparison

For the REIT - Industrial subindustry, Prologis'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.


Prologis Gross Margin % Distribution

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

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



Prologis Gross Margin % Calculation

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

Prologis'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 )
=6013.1 / 8023.469
=(Revenue - Cost of Goods Sold) / Revenue
=(8023.469 - 2010.335) / 8023.469
=74.94 %

Prologis'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 )
=1402.2 / 1889.247
=(Revenue - Cost of Goods Sold) / Revenue
=(1889.247 - 487.083) / 1889.247
=74.22 %

* 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.


Prologis  (NYSE:PLD) 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

Prologis had a gross margin of 74.22% 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.


Prologis Gross Margin % Related Terms

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


Prologis (Prologis) Business Description

Address
Pier 1, Bay 1, San Francisco, CA, USA, 94111
Prologis was formed by the June 2011 merger of AMB Property and Prologis Trust. The company develops, acquires, and operates around 1.2 billion square feet of high-quality industrial and logistics facilities across the globe. The company also has a strategic capital business segment that has around $60 billion of third-party AUM. The company is organized into four global divisions (Americas, Europe, Asia, and other Americas) and operates as a real estate investment trust.
Executives
James B. Connor director 600 E 96TH ST, #100, INDIANAPOLIS IN 46240
George L Fotiades director 281 SUMMIT AVENUE, SUMMIT NJ 07901
Daniel Letter officer: President PIER 1, BAY 1, SAN FRANCISCO CA 94111
David P Oconnor director C/O HIGH RISE, 325 NORTH AVENUE E, WESTFIELD NJ 07090
Avid Modjtabai director 420 MONTGOMERY STREET, 12TH FLOOR, SAN FRANCISCO CA 94104
Lyons Irving F Iii director C/O ESSEX PROPERTY TRUST, INC., 925 E. MEADOW DRIVE, PALO ALTO CA 94303
Timothy D Arndt officer: Chief Financial Officer PIER 1, BAY 1, SAN FRANCISCO CA 94111
William D Zollars director 10777 BARKLEY, PO BOX 7563, OVERLAND PARK KS 66207-0563
Hamid R Moghadam director, officer: Chairman & CEO PIER 1, BAY 1, SAN FRANCISCO CA 94111
Lydia H Kennard director 155 N LAKE AVE, PASADENA CA 91101
Jeffrey L Skelton director
Eugene F Reilly officer: Executive Vice President C/O AMB PROPERTY CORP, PIER I BAY 1, SAN FRANCISCO CA 94111
Thomas S Olinger officer: Chief Financial Officer C/O AMB PROPERTY CORPORATION, PIER 1, BAY 1, SAN FRANCISCO CA 94111
Philip L Hawkins director C/O CORPORATE OFFICE PROPERTIES TRUST, 6711 COLUMBIA GATEWAY DRIVE, #300, COLUMBIA MD 21046
Edward S Nekritz officer: Chief Legal Off./Gen. Counsel KATE MEADE, 14100 E 35TH PL, AURORA CO 80011

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