Gross Margin % is calculated as gross profit divided by its revenue. Lennar's Gross Profit for the
three
months ended in Aug. 2024 was $1,472 Mil. Lennar's Revenue for the
three
months ended in Aug. 2024 was $9,416 Mil. Therefore, Lennar's Gross Margin % for the quarter that ended in Aug. 2024 was 15.64%.
The historical rank and industry rank for Lennar's Gross Margin % or its related term are showing as below:
LEN'
s Gross Margin % Range Over the Past 10 Years
Min: 11.35 Med: 13.94 Max: 21.39
Current: 16.43
During the past 13 years, the highestGross Margin % of Lennar was 21.39%. The lowest was 11.35%. And the median was 13.94%.
LEN's Gross Margin % is ranked worse than 75% of 92
companies
in the Homebuilding & Construction industry
Industry Median: 22.94
vs LEN: 16.43
Lennar had a gross margin of 15.64% for the quarter that ended in Aug. 2024 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Lennar was 12.10% per year.
Lennar Gross Margin % Historical Data
The historical data trend for Lennar'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.
For the Residential Construction subindustry, Lennar'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.
Lennar's Gross Margin % Distribution in the Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, Lennar's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Lennar's Gross Margin % falls into.
* 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.
Lennar (NYSE:LEN) 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
Lennar had a gross margin of 15.64% for the quarter that ended in Aug. 2024 => No sustainable 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.
Lennar Gross Margin % Related Terms
Thank you for viewing the detailed overview of Lennar's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Lennar is one of the largest public homebuilders in the United States. The company's homebuilding operations target first-time, move-up, and active adult homebuyers mainly under the Lennar brand name. Lennar's financial-services segment provides mortgage financing and related services to its homebuyers. Miami-based Lennar is also involved in multifamily and single-family for rent construction and has invested in numerous housing-related technology startups.
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