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Gladstone Commercial (Gladstone Commercial) Operating Margin %

: 37.57% (As of Dec. 2023)
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Operating Margin % is calculated as Operating Income divided by its Revenue. Gladstone Commercial's Operating Income for the three months ended in Dec. 2023 was $13.5 Mil. Gladstone Commercial's Revenue for the three months ended in Dec. 2023 was $35.9 Mil. Therefore, Gladstone Commercial's Operating Margin % for the quarter that ended in Dec. 2023 was 37.57%.

The historical rank and industry rank for Gladstone Commercial's Operating Margin % or its related term are showing as below:

GOOD' s Operating Margin % Range Over the Past 10 Years
Min: 26.17   Med: 33.9   Max: 43.42
Current: 33.88


GOOD's Operating Margin % is ranked worse than
70.36% of 695 companies
in the REITs industry
Industry Median: 51.83 vs GOOD: 33.88

Gladstone Commercial's 5-Year Average Operating Margin % Growth Rate was -0.10% per year.

Gladstone Commercial's Operating Income for the three months ended in Dec. 2023 was $13.5 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was $50.0 Mil.


Gladstone Commercial Operating Margin % Historical Data

The historical data trend for Gladstone Commercial's Operating 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.

Gladstone Commercial Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Operating Margin %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 31.45 27.73 26.17 30.09 34.41

Gladstone Commercial Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Operating Margin % 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 Premium Member Only Premium Member Only Premium Member Only 30.92 30.42 30.43 37.38 37.57

Competitive Comparison

For the REIT - Diversified subindustry, Gladstone Commercial's Operating Margin %, along with its competitors' market caps and Operating 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.


Gladstone Commercial Operating Margin % Distribution

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

* The bar in red indicates where Gladstone Commercial's Operating Margin % falls into.



Gladstone Commercial Operating Margin % Calculation

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

Gladstone Commercial's Operating Margin % for the fiscal year that ended in Dec. 2023 is calculated as

Operating Margin %=Operating Income (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=50.777 / 147.584
=34.41 %

Gladstone Commercial's Operating Margin % for the quarter that ended in Dec. 2023 is calculated as

Operating Margin %=Operating Income (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=13.492 / 35.909
=37.57 %

* 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.


Gladstone Commercial  (NAS:GOOD) Operating Margin % Explanation

Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.


Be Aware

Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia’s Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Gladstone Commercial Operating Margin % Related Terms

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


Gladstone Commercial (Gladstone Commercial) Business Description

Traded in Other Exchanges
Address
1521 Westbranch Drive, Suite 100, McLean, VA, USA, 22102
Gladstone Commercial Corp is a real estate investment trust, which engages in investing and owning net leased industrial, commercial, and retail real property and making long-term industrial and commercial mortgage loans. Its portfolio consists of single-tenant commercial, industrial real properties, and medical properties nationwide. Its principal investment objectives are to generate income from rental properties.
Executives
Gary Gerson officer: Chief Financial Officer 1521 WESTBRANCH DRIVE, SUITE 200, MCLEAN VA 22207
Jay Beckhorn officer: Treasurer 1521 WESTBRANCH DRIVE, SUITE 100, MCLEAN VA 22102
Arthur S. Cooper officer: Chief Investment Officer 1521 WESTBRANCH DRIVE, SUITE 100, MCLEAN VA 22102
Elliott Jr Wislar officer: Chief Investment Officer 1521 WESTBRANCH DRIVE, SUITE 100, MCLEAN VA 22102
Paula Novara director 1521 WESTBRANCH DRIVE, SUITE 100, MCLEAN VA 22102
Robert G Cutlip officer: President C/O HIGHWOODS PROPERTIES, 3100 SMOKETREE COURT, SUITE 600, RALEIGH NC 27604
Michela A English director C/O GLADSTONE CAPITAL CORP, 1521 WESTBRANCH DRIVE SUITE 200, MCLEAN VA 22102
Michael Sodo officer: CFO 1521 WESTBRANCH DRIVE, SUITE 100, MCLEAN VA 22102
Michael Licalsi other: Affiliate of External Advisor 1521 WESTBRANCH DR., MCLEAN VA 22102
Paul W Adelgren director C/O GLADSTONE CAPITAL CORP, 1521 WESTBRANCH DRIVE SUITE 200, MCLEAN VA 22102
David Gladstone director, officer: CEO 1521 WESTBRANCH DRIVE, SUITE 200, MCLEAN VA 22102
Caren D Merrick director 1521 WESTBRANCH, SUITE 100, MCLEAN VA 22102
Walter H Wilkinson director C/O RF MICRO DEVICES, INC., 7628 THORNDIKE ROAD, GREENSBORO NC 27409
Jennifer A Smith officer: Valuation Officer 1521 WESTBRANCH DRIVE, SUITE 100, MCLEAN VA 22102
George Iii Stelljes director, officer: EVP, Chief Investment Officer C/O GLADSTONE CAPITAL CORP, 1521 WESTBRANCH DRIVE SUITE 200, MCLEAN VA 22102