SBI Holdings Inc gross margin has been in long-term decline. The average rate of decline per year is -2.8%.
The historical rank and industry rank for SBI Holdings's Gross Margin % or its related term are showing as below:
SBHGF'
s Gross Margin % Range Over the Past 10 Years
Min: 54.18 Med: 60.98 Max: 67.64
Current: 54.18
During the past 13 years, the highestGross Margin % of SBI Holdings was 67.64%. The lowest was 54.18%. And the median was 60.98%.
SBHGF's Gross Margin % is ranked better than 58.11% of 74
companies
in the Diversified Financial Services industry
Industry Median: 45.05
vs SBHGF: 54.18
SBI Holdings had a gross margin of 50.62% for the quarter that ended in Mar. 2024 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for SBI Holdings was -2.80% per year.
SBI Holdings Gross Margin % Historical Data
The historical data trend for SBI Holdings'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 SBI Holdings's Gross Margin %
For the Financial Conglomerates subindustry, SBI Holdings'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.
SBI Holdings's Gross Margin % Distribution in the Diversified Financial Services Industry
For the Diversified Financial Services industry and Financial Services sector, SBI Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where SBI Holdings'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.
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
SBI Holdings had a gross margin of 50.62% 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.
SBI Holdings Gross Margin % Related Terms
Thank you for viewing the detailed overview of SBI Holdings's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
SBI Holdings Inc is a financial conglomerate that offers a variety of services in securities, banking, and insurance. Operations are divided into financial services, asset management, and biotechnology-related business. Many of the traditional financial offerings fall under the financial services arm and include housing loans and foreign exchange margin trading in addition to the primary banking and insurance businesses. Under the asset management business, the group invests in Japanese and international venture companies that operate in IT, biotechnology, environment/energy, and finance. Aside from financial services, cosmetics, health foods, and drugs are developed by subsidiaries in the biotech-related business.
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