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Twenty-four seven (TSE:7074) Gross Margin % : 36.65% (As of Feb. 2024)


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What is Twenty-four seven Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Twenty-four seven's Gross Profit for the three months ended in Feb. 2024 was 円227 Mil. Twenty-four seven's Revenue for the three months ended in Feb. 2024 was 円619 Mil. Therefore, Twenty-four seven's Gross Margin % for the quarter that ended in Feb. 2024 was 36.65%.

Warning Sign:

Twenty-four seven Inc gross margin has been in long-term decline. The average rate of decline per year is -7.5%.


The historical rank and industry rank for Twenty-four seven's Gross Margin % or its related term are showing as below:

TSE:7074' s Gross Margin % Range Over the Past 10 Years
Min: 41.23   Med: 49.44   Max: 61.93
Current: 41.23


During the past 7 years, the highest Gross Margin % of Twenty-four seven was 61.93%. The lowest was 41.23%. And the median was 49.44%.

TSE:7074's Gross Margin % is ranked worse than
54.9% of 102 companies
in the Personal Services industry
Industry Median: 44.96 vs TSE:7074: 41.23

Twenty-four seven had a gross margin of 36.65% for the quarter that ended in Feb. 2024 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Twenty-four seven was -7.50% per year.


Twenty-four seven Gross Margin % Historical Data

The historical data trend for Twenty-four seven'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.

Twenty-four seven Gross Margin % Chart

Twenty-four seven Annual Data
Trend Nov17 Nov18 Nov19 Nov20 Nov21 Nov22 Nov23
Gross Margin %
Get a 7-Day Free Trial 57.06 48.55 49.44 44.65 41.48

Twenty-four seven Quarterly Data
Nov18 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24
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 38.77 44.87 41.89 40.00 36.65

Competitive Comparison of Twenty-four seven's Gross Margin %

For the Personal Services subindustry, Twenty-four seven'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.


Twenty-four seven's Gross Margin % Distribution in the Personal Services Industry

For the Personal Services industry and Consumer Cyclical sector, Twenty-four seven's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Twenty-four seven's Gross Margin % falls into.



Twenty-four seven Gross Margin % Calculation

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

Twenty-four seven's Gross Margin for the fiscal year that ended in Nov. 2023 is calculated as

Gross Margin % (A: Nov. 2023 )=Gross Profit (A: Nov. 2023 ) / Revenue (A: Nov. 2023 )
=1332.6 / 3212.86
=(Revenue - Cost of Goods Sold) / Revenue
=(3212.86 - 1880.233) / 3212.86
=41.48 %

Twenty-four seven's Gross Margin for the quarter that ended in Feb. 2024 is calculated as


Gross Margin % (Q: Feb. 2024 )=Gross Profit (Q: Feb. 2024 ) / Revenue (Q: Feb. 2024 )
=227 / 619.275
=(Revenue - Cost of Goods Sold) / Revenue
=(619.275 - 392.31) / 619.275
=36.65 %

* 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.


Twenty-four seven  (TSE:7074) 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

Twenty-four seven had a gross margin of 36.65% for the quarter that ended in Feb. 2024 => 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.


Twenty-four seven Gross Margin % Related Terms

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Twenty-four seven (TSE:7074) Business Description

Traded in Other Exchanges
N/A
Address
2-5-1 Atago Green Hills MORI Tower 36th Floor, Minato-ku, Tokyo, JPN, 105-6236
Twenty-four seven Inc is engaged in the operation of the personal training business. It operates Personal Training Jim, named 24/7Workout, and Personal English conversation school, named 24/7English.

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