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AJIS Co (AJIS Co) Gross Margin % : 20.60% (As of Dec. 2023)


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What is AJIS Co Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. AJIS Co's Gross Profit for the three months ended in Dec. 2023 was $10.9 Mil. AJIS Co's Revenue for the three months ended in Dec. 2023 was $52.7 Mil. Therefore, AJIS Co's Gross Margin % for the quarter that ended in Dec. 2023 was 20.60%.

Warning Sign:

AJIS Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -3.2%.


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

AJISF' s Gross Margin % Range Over the Past 10 Years
Min: 25.14   Med: 28.56   Max: 32.89
Current: 25.57


During the past 13 years, the highest Gross Margin % of AJIS Co was 32.89%. The lowest was 25.14%. And the median was 28.56%.

AJISF's Gross Margin % is ranked worse than
65.05% of 987 companies
in the Business Services industry
Industry Median: 34.73 vs AJISF: 25.57

AJIS Co had a gross margin of 20.60% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for AJIS Co was -3.20% per year.


AJIS Co Gross Margin % Historical Data

The historical data trend for AJIS Co'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.

AJIS Co Gross Margin % Chart

AJIS Co Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 30.94 32.89 32.55 28.30 25.57

AJIS Co Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 31.83 22.16 28.23 20.60 29.82

Competitive Comparison of AJIS Co's Gross Margin %

For the Specialty Business Services subindustry, AJIS Co'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.


AJIS Co's Gross Margin % Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, AJIS Co's Gross Margin % distribution charts can be found below:

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



AJIS Co Gross Margin % Calculation

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

AJIS Co's Gross Margin for the fiscal year that ended in Mar. 2024 is calculated as

Gross Margin % (A: Mar. 2024 )=Gross Profit (A: Mar. 2024 ) / Revenue (A: Mar. 2024 )
=51.2 / 200.21
=(Revenue - Cost of Goods Sold) / Revenue
=(200.21 - 149.016) / 200.21
=25.57 %

AJIS Co'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 )
=10.9 / 52.682
=(Revenue - Cost of Goods Sold) / Revenue
=(52.682 - 41.829) / 52.682
=20.60 %

* 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.


AJIS Co  (OTCPK:AJISF) 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

AJIS Co had a gross margin of 20.60% for the quarter that ended in Dec. 2023 => 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.


AJIS Co Gross Margin % Related Terms

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AJIS Co (AJIS Co) Business Description

Traded in Other Exchanges
Address
4-544-4 town Hanamigawa Makuhari, Chiba, JPN, 262-0032
AJIS Co Ltd is engaged in the provision of inventory services and other accessory services for the distribution business in Japan. It provides services for store inventory, logistics warehouse inventory, and asset inventory. It has extended its operations in Asia such as China, Korea, Hong Kong, Thailand, Malaysia, Vietnam, Philippines and mainly in Japan.

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