American Residential Properties (American Residential Properties) Gross Margin % : 53.45% (As of Sep. 2015)

American Residential Properties Gross Margin % Chart

American Residential Properties Quarterly Data
	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15
Gross Margin %	Get a 7-Day Free Trial								59.56	56.60	59.20	59.12	53.45

Competitive Comparison of American Residential Properties's Gross Margin %

For the REIT - Residential subindustry, American Residential Properties'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.

American Residential Properties's Gross Margin % Distribution in the REITs Industry

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

* The bar in red indicates where American Residential Properties's Gross Margin % falls into.

American Residential Properties Gross Margin % Calculation

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

American Residential Properties's Gross Margin for the fiscal year that ended in Dec. 2014 is calculated as

American Residential Properties's Gross Margin for the quarter that ended in Sep. 2015 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.

American Residential Properties  (NYSE:ARPI) 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

American Residential Properties had a gross margin of 53.45% for the quarter that ended in Sep. 2015 => 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.

American Residential Properties Gross Margin % Related Terms

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American Residential Properties (American Residential Properties) Business Description