Advance Residence Investment (TSE:3269) Gross Margin %

Advance Residence Investment Annual Data
	Trend	Jul12	Jul13	Jul14	Jul15	Jul16	Jul17	Jul18	Jul19	Jul20	Jul21
Gross Margin %							60.79	61.12	60.65	60.45	60.41

Advance Residence Investment Semi-Annual Data
	Jan14	Jul14	Jan15	Jul15	Jan16	Jul16	Jan17	Jul17	Jan18	Jul18	Jan19	Jul19	Jan20	Jul20	Jan21	Jul21	Jan22	Jul22	Jan23	Jan24
Gross Margin %																59.78	61.21	59.46	60.78	58.30

For the REIT - Residential subindustry, Advance Residence Investment'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.

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

* The bar in red indicates where Advance Residence Investment's Gross Margin % falls into.

Advance Residence Investment Gross Margin % Calculation

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

Advance Residence Investment's Gross Margin for the fiscal year that ended in Jul. 2021 is calculated as

Advance Residence Investment's Gross Margin for the quarter that ended in Jan. 2023 is calculated as

* 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.

Advance Residence Investment  (TSE:3269) 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

Advance Residence Investment had a gross margin of 60.78% for the quarter that ended in Jan. 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.

Advance Residence Investment Gross Margin % Related Terms

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Advance Residence Investment (TSE:3269) Business Description