Gross Margin % is calculated as gross profit divided by its revenue. Welltower's Gross Profit for the
three
months ended in Sep. 2024 was $798 Mil. Welltower's Revenue for the
three
months ended in Sep. 2024 was $2,011 Mil. Therefore, Welltower's Gross Margin % for the quarter that ended in Sep. 2024 was 39.70%.
Warning Sign:
Welltower Inc gross margin has been in long-term decline. The average rate of decline per year is -4.7%.
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: 38.39 Med: 47.59 Max: 57.93
Current: 39.38
During the past 13 years, the highestGross Margin % of Welltower was 57.93%. The lowest was 38.39%. And the median was 47.59%.
WELL's Gross Margin % is ranked worse than 89.44% of 682
companies
in the REITs industry
Industry Median: 68.53
vs WELL: 39.38
Welltower had a gross margin of 39.70% for the quarter that ended in Sep. 2024 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Welltower was -4.70% 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.
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.
* 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 39.70% for the quarter that ended in Sep. 2024 => 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.
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 owns a diversified healthcare portfolio of 2,096 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.
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