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Laboro AI (TSE:5586) Gross Margin % : 65.84% (As of Mar. 2024)


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What is Laboro AI Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Laboro AI's Gross Profit for the three months ended in Mar. 2024 was 円249 Mil. Laboro AI's Revenue for the three months ended in Mar. 2024 was 円377 Mil. Therefore, Laboro AI's Gross Margin % for the quarter that ended in Mar. 2024 was 65.84%.


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

TSE:5586' s Gross Margin % Range Over the Past 10 Years
Min: 64.86   Med: 70.34   Max: 71.81
Current: 64.92


During the past 3 years, the highest Gross Margin % of Laboro AI was 71.81%. The lowest was 64.86%. And the median was 70.34%.

TSE:5586's Gross Margin % is ranked better than
73.4% of 2635 companies
in the Software industry
Industry Median: 41.84 vs TSE:5586: 64.92

Laboro AI had a gross margin of 65.84% for the quarter that ended in Mar. 2024 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Laboro AI was 0.00% per year.


Laboro AI Gross Margin % Historical Data

The historical data trend for Laboro AI'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.

Laboro AI Gross Margin % Chart

Laboro AI Annual Data
Trend Sep21 Sep22 Sep23
Gross Margin %
71.81 70.34 64.86

Laboro AI Quarterly Data
Sep21 Sep22 Mar23 Jun23 Sep23 Dec23 Mar24
Gross Margin % Get a 7-Day Free Trial - 62.69 64.36 67.01 65.84

Competitive Comparison of Laboro AI's Gross Margin %

For the Software - Infrastructure subindustry, Laboro AI'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.


Laboro AI's Gross Margin % Distribution in the Software Industry

For the Software industry and Technology sector, Laboro AI's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Laboro AI's Gross Margin % falls into.



Laboro AI Gross Margin % Calculation

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

Laboro AI's Gross Margin for the fiscal year that ended in Sep. 2023 is calculated as

Gross Margin % (A: Sep. 2023 )=Gross Profit (A: Sep. 2023 ) / Revenue (A: Sep. 2023 )
=888.1 / 1369.186
=(Revenue - Cost of Goods Sold) / Revenue
=(1369.186 - 481.071) / 1369.186
=64.86 %

Laboro AI'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 )
=248.5 / 377.415
=(Revenue - Cost of Goods Sold) / Revenue
=(377.415 - 128.914) / 377.415
=65.84 %

* 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.


Laboro AI  (TSE:5586) 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

Laboro AI had a gross margin of 65.84% 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.


Laboro AI Gross Margin % Related Terms

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Laboro AI (TSE:5586) Business Description

Traded in Other Exchanges
N/A
Address
8-11-1 Ginza, Chuo-ku, Tokyo, JPN, 104-0061
Laboro AI Inc is a Provider of developing business solutions using artificial intelligence technology intended to connect technology and business. The company also provides consulting services related to the utilization of artificial intelligence which includes planning, introduction, and execution support for AI utilization.

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