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Kyowakogyosyo Co (TSE:5971) Gross Margin % : 18.41% (As of Jan. 2024)


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What is Kyowakogyosyo Co Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Kyowakogyosyo Co's Gross Profit for the three months ended in Jan. 2024 was 円475 Mil. Kyowakogyosyo Co's Revenue for the three months ended in Jan. 2024 was 円2,582 Mil. Therefore, Kyowakogyosyo Co's Gross Margin % for the quarter that ended in Jan. 2024 was 18.41%.

Warning Sign:

Kyowakogyosyo Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -3.4%.


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

TSE:5971' s Gross Margin % Range Over the Past 10 Years
Min: 18.01   Med: 19.79   Max: 24.35
Current: 19.52


During the past 13 years, the highest Gross Margin % of Kyowakogyosyo Co was 24.35%. The lowest was 18.01%. And the median was 19.79%.

TSE:5971's Gross Margin % is ranked worse than
70.09% of 2929 companies
in the Industrial Products industry
Industry Median: 26.57 vs TSE:5971: 19.52

Kyowakogyosyo Co had a gross margin of 18.41% for the quarter that ended in Jan. 2024 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Kyowakogyosyo Co was -3.40% per year.


Kyowakogyosyo Co Gross Margin % Historical Data

The historical data trend for Kyowakogyosyo 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.

Kyowakogyosyo Co Gross Margin % Chart

Kyowakogyosyo Co Annual Data
Trend Apr14 Apr15 Apr16 Apr17 Apr18 Apr19 Apr20 Apr21 Apr22 Apr23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 23.28 19.26 20.14 24.02 18.57

Kyowakogyosyo Co Quarterly Data
Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24
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 21.65 18.01 21.23 20.48 18.41

Competitive Comparison of Kyowakogyosyo Co's Gross Margin %

For the Tools & Accessories subindustry, Kyowakogyosyo 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.


Kyowakogyosyo Co's Gross Margin % Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Kyowakogyosyo Co's Gross Margin % distribution charts can be found below:

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



Kyowakogyosyo Co Gross Margin % Calculation

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

Kyowakogyosyo Co's Gross Margin for the fiscal year that ended in Apr. 2023 is calculated as

Gross Margin % (A: Apr. 2023 )=Gross Profit (A: Apr. 2023 ) / Revenue (A: Apr. 2023 )
=2454.4 / 13213.88
=(Revenue - Cost of Goods Sold) / Revenue
=(13213.88 - 10759.442) / 13213.88
=18.57 %

Kyowakogyosyo Co's Gross Margin for the quarter that ended in Jan. 2024 is calculated as


Gross Margin % (Q: Jan. 2024 )=Gross Profit (Q: Jan. 2024 ) / Revenue (Q: Jan. 2024 )
=475.5 / 2582.145
=(Revenue - Cost of Goods Sold) / Revenue
=(2582.145 - 2106.667) / 2582.145
=18.41 %

* 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.


Kyowakogyosyo Co  (TSE:5971) 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

Kyowakogyosyo Co had a gross margin of 18.41% for the quarter that ended in Jan. 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.


Kyowakogyosyo Co Gross Margin % Related Terms

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Kyowakogyosyo Co (TSE:5971) Business Description

Traded in Other Exchanges
N/A
Address
1-chome industrial estate 57, Komatsu, Ishikawa, JPN, 923-8620
Kyowakogyosyo Co Ltd manufactures and sells bolts for construction machinery and related businesses. Its products include hexagon head bolt and JIS six square hole equipped volts or bolt, marine engine unit bolts, automotive parts, and forged parts. The products offered by the company are used in bucket-edge system, attachment system, and suspension system, among others.

Kyowakogyosyo Co (TSE:5971) Headlines

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