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Nippon Paint Holdings Co (Nippon Paint Holdings Co) Gross Margin % : 40.78% (As of Mar. 2024)


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What is Nippon Paint Holdings Co Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Nippon Paint Holdings Co's Gross Profit for the three months ended in Mar. 2024 was $1,046 Mil. Nippon Paint Holdings Co's Revenue for the three months ended in Mar. 2024 was $2,565 Mil. Therefore, Nippon Paint Holdings Co's Gross Margin % for the quarter that ended in Mar. 2024 was 40.78%.


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

NPCPF' s Gross Margin % Range Over the Past 10 Years
Min: 35.52   Med: 39.21   Max: 41.69
Current: 40.29


During the past 13 years, the highest Gross Margin % of Nippon Paint Holdings Co was 41.69%. The lowest was 35.52%. And the median was 39.21%.

NPCPF's Gross Margin % is ranked better than
83.86% of 1512 companies
in the Chemicals industry
Industry Median: 22.5 vs NPCPF: 40.29

Nippon Paint Holdings Co had a gross margin of 40.78% for the quarter that ended in Mar. 2024 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Nippon Paint Holdings Co was -0.40% per year.


Nippon Paint Holdings Co Gross Margin % Historical Data

The historical data trend for Nippon Paint Holdings 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.

Nippon Paint Holdings Co Gross Margin % Chart

Nippon Paint Holdings Co Annual Data
Trend Mar14 Mar15 Mar16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 39.83 41.58 37.90 37.24 39.94

Nippon Paint Holdings 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 39.33 40.04 39.73 40.63 40.78

Competitive Comparison of Nippon Paint Holdings Co's Gross Margin %

For the Specialty Chemicals subindustry, Nippon Paint Holdings 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.


Nippon Paint Holdings Co's Gross Margin % Distribution in the Chemicals Industry

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

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



Nippon Paint Holdings Co Gross Margin % Calculation

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

Nippon Paint Holdings Co's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )=Gross Profit (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=4001.4 / 10019.162
=(Revenue - Cost of Goods Sold) / Revenue
=(10019.162 - 6017.787) / 10019.162
=39.94 %

Nippon Paint Holdings Co's Gross Margin for the quarter that ended in Mar. 2024 is calculated as


Gross Margin % (Q: Mar. 2024 )=Gross Profit (Q: Mar. 2024 ) / Revenue (Q: Mar. 2024 )
=1046.1 / 2565.229
=(Revenue - Cost of Goods Sold) / Revenue
=(2565.229 - 1519.157) / 2565.229
=40.78 %

* 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.


Nippon Paint Holdings Co  (OTCPK:NPCPF) 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

Nippon Paint Holdings Co had a gross margin of 40.78% for the quarter that ended in Mar. 2024 => Durable 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.


Nippon Paint Holdings Co Gross Margin % Related Terms

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Nippon Paint Holdings Co (Nippon Paint Holdings Co) Business Description

Traded in Other Exchanges
Address
2-1-2 Oyodo Kita, Kita-ku, Osaka, JPN, 531-8511
Nippon Paint Holdings Co Ltd is a holding company, which, through its subsidiaries, manufactures and sells a variety of paint and coating products. The firm organizes itself into four operating companies based on end market. The automotive paints division sells paint and temperature-control coatings that are used to cover the body of an automobile. The industrial-use paints division sells paints and coatings for trains and ships. The trade-use paints division sells paints and coatings that are used on buildings, bridges, and roads. The surface treatments division sells anti-corrosive and anti-rust coatings for metal products and electronics. The company organizes itself into three segments based on geography: Japan, Asia, and Americas. The majority of revenue comes from Japan.

Nippon Paint Holdings Co (Nippon Paint Holdings Co) Headlines