Aiai Group (TSE:6557) Gross Margin % : 12.89% (As of Dec. 2023)

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What is Aiai Group Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Aiai Group's Gross Profit for the three months ended in Dec. 2023 was 円383 Mil. Aiai Group's Revenue for the three months ended in Dec. 2023 was 円2,974 Mil. Therefore, Aiai Group's Gross Margin % for the quarter that ended in Dec. 2023 was 12.89%.

Warning Sign:

Aiai Group Corp gross margin has been in long-term decline. The average rate of decline per year is -9.4%.

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

TSE:6557' s Gross Margin % Range Over the Past 10 Years
Min: 5.16 Med: 9.23 Max: 14.71
Current: 14.71

During the past 7 years, the highest Gross Margin % of Aiai Group was 14.71%. The lowest was 5.16%. And the median was 9.23%.

TSE:6557's Gross Margin % is ranked worse than
89% of 609 companies
in the Healthcare Providers & Services industry
Industry Median: 41.54 vs TSE:6557: 14.71

Aiai Group had a gross margin of 12.89% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Aiai Group was -9.40% per year.

Aiai Group Gross Margin % Historical Data

The historical data trend for Aiai Group'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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Aiai Group Gross Margin % Chart

Aiai Group Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Gross Margin %

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12.43

5.83

7.35

5.16

11.10

Aiai Group Quarterly Data
	Jun18	Dec18	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Gross Margin %	Get a 7-Day Free Trial															17.28	17.48	12.10	16.44	12.89

Competitive Comparison of Aiai Group's Gross Margin %

For the Medical Care Facilities subindustry, Aiai Group'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.

Aiai Group's Gross Margin % Distribution in the Healthcare Providers & Services Industry

For the Healthcare Providers & Services industry and Healthcare sector, Aiai Group's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Aiai Group's Gross Margin % falls into.

Aiai Group Gross Margin % Calculation

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

Aiai Group's Gross Margin for the fiscal year that ended in Dec. 2021 is calculated as

Gross Margin % (A: Dec. 2021 )	=	Gross Profit (A: Dec. 2021 )	/	Revenue (A: Dec. 2021 )
	=	1047.1	/	9432.319
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(9432.319 - 8385.187)	/	9432.319
	=	11.10 %

Aiai Group's Gross Margin for the quarter that ended in Dec. 2023 is calculated as

Gross Margin % (Q: Dec. 2023 )	=	Gross Profit (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	383.3	/	2973.94
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(2973.94 - 2590.635)	/	2973.94
	=	12.89 %

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.

Aiai Group (TSE:6557) 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

Aiai Group had a gross margin of 12.89% for the quarter that ended in Dec. 2023 => 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.

Aiai Group Gross Margin % Related Terms

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Aiai Group (TSE:6557) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Healthcare Providers & Services » Aiai Group Corp (TSE:6557) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

No. 2 No. 1, Kinshi 1-chome Sumida-ku, Arkentral 16th Floor, Tokyo, JPN, 130-0013

Website

https://www.aiai-group.co.jp

Aiai Group Corp is engaged in solving population problems in Japan as social problems and by welfare projects. The company operates in nurseries business, nursing care business projects, ICT business as welfare support business.

Aiai Group (TSE:6557) Headlines

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