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Paragon REIT (SGX:SK6U) Gross Margin % : 66.24% (As of Dec. 2023)


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What is Paragon REIT Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Paragon REIT's Gross Profit for the six months ended in Dec. 2023 was S$96.6 Mil. Paragon REIT's Revenue for the six months ended in Dec. 2023 was S$145.8 Mil. Therefore, Paragon REIT's Gross Margin % for the quarter that ended in Dec. 2023 was 66.24%.

Warning Sign:

Paragon REIT gross margin has been in long-term decline. The average rate of decline per year is -1.6%.


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

SGX:SK6U' s Gross Margin % Range Over the Past 10 Years
Min: 64.45   Med: 67.18   Max: 70.92
Current: 65.93


During the past 10 years, the highest Gross Margin % of Paragon REIT was 70.92%. The lowest was 64.45%. And the median was 67.18%.

SGX:SK6U's Gross Margin % is ranked worse than
55.84% of 634 companies
in the REITs industry
Industry Median: 68.745 vs SGX:SK6U: 65.93

Paragon REIT had a gross margin of 66.24% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Paragon REIT was -1.60% per year.


Paragon REIT Gross Margin % Historical Data

The historical data trend for Paragon REIT'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.

Paragon REIT Gross Margin % Chart

Paragon REIT Annual Data
Trend Aug14 Aug15 Aug16 Aug17 Aug18 Aug19 Aug20 Aug21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 70.39 66.25 64.45 65.83 65.93

Paragon REIT Semi-Annual Data
Feb14 Aug14 Feb15 Aug15 Feb16 Aug16 Feb17 Aug17 Feb18 Aug18 Feb19 Aug19 Feb20 Aug20 Feb21 Aug21 Feb22 Dec22 Jun23 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 62.87 65.74 65.85 65.61 66.24

Competitive Comparison of Paragon REIT's Gross Margin %

For the REIT - Retail subindustry, Paragon REIT'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.


Paragon REIT's Gross Margin % Distribution in the REITs Industry

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

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



Paragon REIT Gross Margin % Calculation

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

Paragon REIT'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 )
=190.5 / 288.926
=(Revenue - Cost of Goods Sold) / Revenue
=(288.926 - 98.433) / 288.926
=65.93 %

Paragon REIT'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 )
=96.6 / 145.842
=(Revenue - Cost of Goods Sold) / Revenue
=(145.842 - 49.229) / 145.842
=66.24 %

* 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.


Paragon REIT  (SGX:SK6U) 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

Paragon REIT had a gross margin of 66.24% 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.


Paragon REIT Gross Margin % Related Terms

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Paragon REIT (SGX:SK6U) Business Description

Traded in Other Exchanges
N/A
Address
79 Robinson Road, CapitaSky, Bridge+, Singapore, SGP, 068897
Paragon REIT is a real estate investment trust which focuses on retail properties in Singapore and other Asia Pacific regions. The trust primarily comprises upscale retail malls and shopping centres.

Paragon REIT (SGX:SK6U) Headlines

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