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Welltower (Welltower) Gross Margin % : 40.79% (As of Dec. 2023)


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What is Welltower Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Welltower's Gross Profit for the three months ended in Dec. 2023 was $714 Mil. Welltower's Revenue for the three months ended in Dec. 2023 was $1,750 Mil. Therefore, Welltower's Gross Margin % for the quarter that ended in Dec. 2023 was 40.79%.

Warning Sign:

Welltower Inc gross margin has been in long-term decline. The average rate of decline per year is -4.2%.


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

WELL' s Gross Margin % Range Over the Past 10 Years
Min: 39.28   Med: 47.86   Max: 58.03
Current: 40.53


During the past 13 years, the highest Gross Margin % of Welltower was 58.03%. The lowest was 39.28%. And the median was 47.86%.

WELL's Gross Margin % is ranked worse than
90.54% of 634 companies
in the REITs industry
Industry Median: 68.745 vs WELL: 40.53

Welltower had a gross margin of 40.79% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Welltower was -4.20% per year.


Welltower Gross Margin % Historical Data

The historical data trend for Welltower'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.

Welltower Gross Margin % Chart

Welltower Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 47.47 43.60 41.49 39.28 40.53

Welltower 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 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 38.17 38.63 42.44 40.12 40.79

Competitive Comparison of Welltower's Gross Margin %

For the REIT - Healthcare Facilities subindustry, Welltower'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.


Welltower's Gross Margin % Distribution in the REITs Industry

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

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



Welltower Gross Margin % Calculation

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

Welltower'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 )
=2690.2 / 6637.995
=(Revenue - Cost of Goods Sold) / Revenue
=(6637.995 - 3947.776) / 6637.995
=40.53 %

Welltower'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 )
=713.7 / 1749.775
=(Revenue - Cost of Goods Sold) / Revenue
=(1749.775 - 1036.078) / 1749.775
=40.79 %

* 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.


Welltower  (NYSE:WELL) 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

Welltower had a gross margin of 40.79% 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.


Welltower Gross Margin % Related Terms

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


Welltower (Welltower) Business Description

Traded in Other Exchanges
Address
4500 Dorr Street, Toledo, OH, USA, 43615
Welltower owns a diversified healthcare portfolio of over 2,000 in-place properties spread across the senior housing, medical office, and skilled nursing/post-acute care sectors. The portfolio includes over 100 properties in both Canada and the United Kingdom as the company looks for additional investment opportunities in countries with mature healthcare systems that operate similarly to that of the United States.
Executives
John F. Burkart officer: EVP-Chief Operating Officer C/O ESSEX PROPERTY TRUST INC., 1100 PARK PLACE, SUITE 200, SAN MATEO CA 94403
Ade J. Patton director 4500 DORR STREET, TOLEDO DE 43515
Dennis G Lopez director 12700 HILL COUNTRY BOULEVARD, SUITE T-200, AUSTIN TX 78738
Philip L Hawkins director C/O CORPORATE OFFICE PROPERTIES TRUST, 6711 COLUMBIA GATEWAY DRIVE, #300, COLUMBIA MD 21046
Diana Reid director 4500 DORR STREET, TOLEDO OH 43615
Ayesha Menon officer: SVP - Strategic Investments 4500 DORR STREET, TOLEDO OH 43615
Timothy Mchugh officer: SVP - Chief Financial Officer 4500 DORR STREET, TOLEDO OH 43515
Thomas J Derosa director C/O WELLTOWER INC., 4500 DORR STREET, TOLEDO OH 43615
John Goodey officer: Chief Financial Officer 4500 DORR STREET, TOLEDO OH 43615
Mercedes Kerr officer: EVP-Business Development 2449 GRIVEL PLACE, TUSTIN CA 92782
Kathryn M Sullivan director PO BOX 98029, BATON ROUGE LA 70898-9029
Johnese Spisso director 4500 DORR STREET, TOLEDO OH 43615
Karen B Desalvo director 500 W MAIN STREET, LOUISVILLE KY 40202
Shankh Mitra officer: SVP, Finance & Investments 4500 DORR STREET, TOLEDO OH 43615
R Scott Trumbull director FRANKLIN ELECTRIC CO., INC., 9255 COVERDALE RD, FORT WAYNE IN 46809

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