Mitsubishi Estate Co (TSE:8802) Gross Margin %

: 25.17% (As of Dec. 2023)

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Gross Margin % is calculated as gross profit divided by its revenue. Mitsubishi Estate Co's Gross Profit for the three months ended in Dec. 2023 was 円85,188 Mil. Mitsubishi Estate Co's Revenue for the three months ended in Dec. 2023 was 円338,515 Mil. Therefore, Mitsubishi Estate Co's Gross Margin % for the quarter that ended in Dec. 2023 was 25.17%.

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

TSE:8802' s Gross Margin % Range Over the Past 10 Years
Min: 21.7 Med: 25.48 Max: 28.82
Current: 25.3

During the past 13 years, the highest Gross Margin % of Mitsubishi Estate Co was 28.82%. The lowest was 21.70%. And the median was 25.48%.

TSE:8802's Gross Margin % is ranked worse than
66.83% of 1655 companies
in the Real Estate industry
Industry Median: 36.77 vs TSE:8802: 25.30

Mitsubishi Estate Co had a gross margin of 25.17% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Mitsubishi Estate Co was 2.60% per year.

Mitsubishi Estate Co Gross Margin % Historical Data

The historical data trend for Mitsubishi Estate Co'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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Mitsubishi Estate Co Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Gross Margin %

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25.51

25.74

26.31

27.77

28.82

Mitsubishi Estate Co 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															26.33	26.58	25.85	22.85	25.17

Competitive Comparison

For the Real Estate - Diversified subindustry, Mitsubishi Estate Co'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.

Mitsubishi Estate Co Gross Margin % Distribution

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

* The bar in red indicates where Mitsubishi Estate Co's Gross Margin % falls into.

Mitsubishi Estate Co Gross Margin % Calculation

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

Mitsubishi Estate Co's Gross Margin for the fiscal year that ended in Mar. 2023 is calculated as

Gross Margin % (A: Mar. 2023 )	=	Gross Profit (A: Mar. 2023 )	/	Revenue (A: Mar. 2023 )
	=	397034	/	1377827
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(1377827 - 980793)	/	1377827
	=	28.82 %

Mitsubishi Estate Co'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 )
	=	85188	/	338515
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(338515 - 253327)	/	338515
	=	25.17 %

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.

Mitsubishi Estate Co (TSE:8802) 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

Mitsubishi Estate Co had a gross margin of 25.17% for the quarter that ended in Dec. 2023 => Competition eroding margins

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.

Mitsubishi Estate Co Gross Margin % Related Terms

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Mitsubishi Estate Co (TSE:8802) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » Real Estate » Mitsubishi Estate Co Ltd (TSE:8802) » Definitions » Gross Margin %

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Traded in Other Exchanges

MITEY:USA MITEF:USA

Address

Otemachi 1-chome, Otemachi Park Building, 1-1, Chiyoda-ku, Tokyo, JPN, 100-8133

Website

http://www.mec.co.jp

Mitsubishi Estate is one of the three big Japanese real estate companies. Around two thirds of its operating profit comes from leasing office space in Japan, where half of its portfolio is concentrated in the prime Marunouchi/Otemachi district between Tokyo station and the Imperial Palace. Mitsubishi Estate's predecessor originally bought this land from the government in 1890, and the company sees itself as steward of the showcase area's long-term development, rarely if ever selling any properties there.

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