Denka Co (Denka Co) Gross Margin % : 18.53% (As of Dec. 2023)

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What is Denka Co Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Denka Co's Gross Profit for the three months ended in Dec. 2023 was $131 Mil. Denka Co's Revenue for the three months ended in Dec. 2023 was $705 Mil. Therefore, Denka Co's Gross Margin % for the quarter that ended in Dec. 2023 was 18.53%.

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

DENKF' s Gross Margin % Range Over the Past 10 Years
Min: 20.47 Med: 24.97 Max: 28.27
Current: 22.03

During the past 13 years, the highest Gross Margin % of Denka Co was 28.27%. The lowest was 20.47%. And the median was 24.97%.

DENKF's Gross Margin % is ranked worse than
50.86% of 1508 companies
in the Chemicals industry
Industry Median: 22.245 vs DENKF: 22.03

Denka Co had a gross margin of 18.53% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Denka Co was 1.10% per year.

Denka Co Gross Margin % Historical Data

The historical data trend for Denka 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.

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Denka Co Gross Margin % Chart

Denka Co Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Gross Margin %

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26.09

28.27

27.85

25.11

21.19

Denka 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															23.28	22.54	23.85	18.53	19.92

Competitive Comparison of Denka Co's Gross Margin %

For the Chemicals subindustry, Denka 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.

Denka Co's Gross Margin % Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Denka Co's Gross Margin % distribution charts can be found below:

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

Denka Co Gross Margin % Calculation

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

Denka 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 )
	=	550.7	/	2598.229
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(2598.229 - 2047.556)	/	2598.229
	=	21.19 %

Denka 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 )
	=	130.6	/	704.771
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(704.771 - 574.192)	/	704.771
	=	18.53 %

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.

Denka Co (OTCPK:DENKF) 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

Denka Co had a gross margin of 18.53% for the quarter that ended in Dec. 2023 => 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.

Denka Co Gross Margin % Related Terms

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Denka Co (Denka Co) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » Denka Co Ltd (OTCPK:DENKF) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

4061:Japan DIK:Germany DIK:Germany

Address

Nihonbashi Mitsui Tower, 1-1, Nihonbashi-Muromachi, 2-Chome Chuo-ku, Tokyo, JPN, 103-8338

Website

http://www.denka.co.jp

Denka Co Ltd manufactures and sells chemicals, plastics, and chemical-based products. The firm organizes itself into four segments based on product type. The elastomers and performance plastics segment, which generates more revenue than any other segment, sells rubber products used by the automotive industry and plastics used to manufacture electronics including televisions. The infrastructure and social solutions segment sells cement and fertilizer to the construction and building industries. The electronics and innovative products segment sells film, and resins used by the electronics industry. The life science and environment products segment sells housing materials including rain gutters, plastic food packaging materials, and industrial materials including electrical tape.

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