Nippon Kayaku Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -2.6%.
The historical rank and industry rank for Nippon Kayaku Co's Gross Margin % or its related term are showing as below:
TSE:4272'
s Gross Margin % Range Over the Past 10 Years
Min: 30.42 Med: 37.78 Max: 43.37
Current: 30.42
During the past 13 years, the highestGross Margin % of Nippon Kayaku Co was 43.37%. The lowest was 30.42%. And the median was 37.78%.
TSE:4272's Gross Margin % is ranked better than 68.75% of 1507
companies
in the Chemicals industry
Industry Median: 22.25
vs TSE:4272: 30.42
Nippon Kayaku Co had a gross margin of 32.18% for the quarter that ended in Dec. 2023 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Nippon Kayaku Co was -2.60% per year.
Nippon Kayaku Co Gross Margin % Historical Data
The historical data trend for Nippon Kayaku 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.
Competitive Comparison of Nippon Kayaku Co's Gross Margin %
For the Chemicals subindustry, Nippon Kayaku 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 Kayaku Co's Gross Margin % Distribution in the Chemicals Industry
For the Chemicals industry and Basic Materials sector, Nippon Kayaku Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Nippon Kayaku Co'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.
Nippon Kayaku Co (TSE:4272) 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 Kayaku Co had a gross margin of 32.18% 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.
Nippon Kayaku Co Gross Margin % Related Terms
Thank you for viewing the detailed overview of Nippon Kayaku Co's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Nippon Kayaku Co Ltd manufactures and sells a variety of chemicals. The firm organizes itself into four segments based on product type. The functional chemicals segment, which generates more revenue than any other segment, sells epoxy resins used as flame retardants in electronics, colorants and dyes used in inkjet printers and the manufacture of textiles. The pharmaceuticals segment sells anti-cancer drugs, biological drugs, cardiovascular agents, vitamin compounds, and anti-inflammatory agents. The safety systems segment sells airbag inflators and micro gas generators for seatbelt pretensioners to the automotive industry, both of which are used to protect passengers during an accident. The agrochemicals segment sells insecticides and herbicides. The majority of revenue comes from Asia.
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