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Daito Trust Construction Co (TSE:1878) Gross Margin % : 17.20% (As of Mar. 2024)


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What is Daito Trust Construction Co Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Daito Trust Construction Co's Gross Profit for the three months ended in Mar. 2024 was 円79,406 Mil. Daito Trust Construction Co's Revenue for the three months ended in Mar. 2024 was 円461,637 Mil. Therefore, Daito Trust Construction Co's Gross Margin % for the quarter that ended in Mar. 2024 was 17.20%.

Warning Sign:

Daito Trust Construction Co Ltd 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 Daito Trust Construction Co's Gross Margin % or its related term are showing as below:

TSE:1878' s Gross Margin % Range Over the Past 10 Years
Min: 15.59   Med: 17.74   Max: 19.08
Current: 16.45


During the past 13 years, the highest Gross Margin % of Daito Trust Construction Co was 19.08%. The lowest was 15.59%. And the median was 17.74%.

TSE:1878's Gross Margin % is ranked worse than
81.6% of 1652 companies
in the Real Estate industry
Industry Median: 36.775 vs TSE:1878: 16.45

Daito Trust Construction Co had a gross margin of 17.20% for the quarter that ended in Mar. 2024 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Daito Trust Construction Co was -2.80% per year.


Daito Trust Construction Co Gross Margin % Historical Data

The historical data trend for Daito Trust Construction 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.

Daito Trust Construction Co Gross Margin % Chart

Daito Trust Construction 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 17.81 16.04 16.43 15.59 16.45

Daito Trust Construction 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 15.54 16.07 16.07 16.37 17.20

Competitive Comparison of Daito Trust Construction Co's Gross Margin %

For the Real Estate - Diversified subindustry, Daito Trust Construction 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.


Daito Trust Construction Co's Gross Margin % Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, Daito Trust Construction Co's Gross Margin % distribution charts can be found below:

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



Daito Trust Construction Co Gross Margin % Calculation

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

Daito Trust Construction 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 )
=284777 / 1731466
=(Revenue - Cost of Goods Sold) / Revenue
=(1731466 - 1446689) / 1731466
=16.45 %

Daito Trust Construction 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 )
=79406 / 461637
=(Revenue - Cost of Goods Sold) / Revenue
=(461637 - 382231) / 461637
=17.20 %

* 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.


Daito Trust Construction Co  (TSE:1878) 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

Daito Trust Construction Co had a gross margin of 17.20% for the quarter that ended in Mar. 2024 => 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.


Daito Trust Construction Co Gross Margin % Related Terms

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Daito Trust Construction Co (TSE:1878) Business Description

Traded in Other Exchanges
Address
2-16-1, Konan, Minato-ku, Tokyo, JPN, 108-8211
Daito Trust Construction Co Ltd engages in the design and construction of apartments, condominiums, rental office buildings, factories, and warehouses. Additional activities include tenant recruiting, building maintenance, and contracting arrangements. A Lease Management Trust System sits at the center of Daito's operations. Under this system, business is divided between the construction business and the real estate business. The company plans and proposes building rental businesses to landowners, and then designs and constructs the contracted rental buildings. Daito also recruits tenants for its constructed rental buildings and provides property management and operation services for the buildings.

Daito Trust Construction Co (TSE:1878) Headlines

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