Aichi Steel (TSE:5482) Gross Margin % : 11.79% (As of Mar. 2024)

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What is Aichi Steel Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Aichi Steel's Gross Profit for the three months ended in Mar. 2024 was 円8,197 Mil. Aichi Steel's Revenue for the three months ended in Mar. 2024 was 円69,548 Mil. Therefore, Aichi Steel's Gross Margin % for the quarter that ended in Mar. 2024 was 11.79%.

Warning Sign:

Aichi Steel Corp gross margin has been in long-term decline. The average rate of decline per year is -4.8%.

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

TSE:5482' s Gross Margin % Range Over the Past 10 Years
Min: 10.19 Med: 13.52 Max: 16.07
Current: 13.17

During the past 13 years, the highest Gross Margin % of Aichi Steel was 16.07%. The lowest was 10.19%. And the median was 13.52%.

TSE:5482's Gross Margin % is ranked better than
51.37% of 584 companies
in the Steel industry
Industry Median: 12.94 vs TSE:5482: 13.17

Aichi Steel had a gross margin of 11.79% for the quarter that ended in Mar. 2024 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Aichi Steel was -4.80% per year.

Aichi Steel Gross Margin % Historical Data

The historical data trend for Aichi Steel'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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Aichi Steel Gross Margin % Chart

Aichi Steel Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Gross Margin %

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15.72

13.47

10.53

10.19

13.17

Aichi Steel 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															12.51	12.83	13.06	14.84	11.79

Competitive Comparison of Aichi Steel's Gross Margin %

For the Steel subindustry, Aichi Steel'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.

Aichi Steel's Gross Margin % Distribution in the Steel Industry

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

* The bar in red indicates where Aichi Steel's Gross Margin % falls into.

Aichi Steel Gross Margin % Calculation

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

Aichi Steel'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 )
	=	39049	/	296516
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(296516 - 257467)	/	296516
	=	13.17 %

Aichi Steel'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 )
	=	8197	/	69548
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(69548 - 61351)	/	69548
	=	11.79 %

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.

Aichi Steel (TSE:5482) 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

Aichi Steel had a gross margin of 11.79% 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.

Aichi Steel Gross Margin % Related Terms

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Aichi Steel (TSE:5482) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Steel » Aichi Steel Corp (TSE:5482) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

1 Wanowari Araomachi, Aichi-ken, Tokai, JPN, 476-8666

Website

http://www.aichi-steel.co.jp

Aichi Steel Corp is a Japan-based company that manufactures and sells steel, forged products and electro-magnetic products. The company operates through four segments. The steel segment manufactures and sells specialty steel, stainless steel, and titanium. The forged product segment produces a wide variety of forgings. The electromagnetic products segment manufactures electromagnetic components. The steel and forged products segments are the two biggest segments, representing the majority of Aichi Steel's sales. Aichi Steel is a member of Toyota Group. Toyota Motor and Toyota Tsusho are its major customers. The company generates most of its revenue from the Japanese domestic market.

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