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Nippon Sharyo (TSE:7102) Gross Margin % : 18.81% (As of Dec. 2023)


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What is Nippon Sharyo Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Nippon Sharyo's Gross Profit for the three months ended in Dec. 2023 was 円3,226 Mil. Nippon Sharyo's Revenue for the three months ended in Dec. 2023 was 円17,155 Mil. Therefore, Nippon Sharyo's Gross Margin % for the quarter that ended in Dec. 2023 was 18.81%.

Warning Sign:

Nippon Sharyo Ltd gross margin has been in long-term decline. The average rate of decline per year is -3.3%.


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

TSE:7102' s Gross Margin % Range Over the Past 10 Years
Min: -2.76   Med: 14.63   Max: 16.85
Current: 15.99


During the past 13 years, the highest Gross Margin % of Nippon Sharyo was 16.85%. The lowest was -2.76%. And the median was 14.63%.

TSE:7102's Gross Margin % is ranked worse than
61.92% of 948 companies
in the Transportation industry
Industry Median: 20.035 vs TSE:7102: 15.99

Nippon Sharyo had a gross margin of 18.81% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Nippon Sharyo was -3.30% per year.


Nippon Sharyo Gross Margin % Historical Data

The historical data trend for Nippon Sharyo'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.

Nippon Sharyo Gross Margin % Chart

Nippon Sharyo Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 16.49 16.14 14.13 12.80 15.98

Nippon Sharyo 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 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 14.19 16.10 16.39 18.81 13.95

Competitive Comparison of Nippon Sharyo's Gross Margin %

For the Railroads subindustry, Nippon Sharyo'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.


Nippon Sharyo's Gross Margin % Distribution in the Transportation Industry

For the Transportation industry and Industrials sector, Nippon Sharyo's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Nippon Sharyo's Gross Margin % falls into.



Nippon Sharyo Gross Margin % Calculation

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

Nippon Sharyo'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 )
=14076 / 88058
=(Revenue - Cost of Goods Sold) / Revenue
=(88058 - 73982) / 88058
=15.98 %

Nippon Sharyo'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 )
=3226 / 17155
=(Revenue - Cost of Goods Sold) / Revenue
=(17155 - 13929) / 17155
=18.81 %

* 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.


Nippon Sharyo  (TSE:7102) 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

Nippon Sharyo had a gross margin of 18.81% 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.


Nippon Sharyo Gross Margin % Related Terms

Thank you for viewing the detailed overview of Nippon Sharyo's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Nippon Sharyo (TSE:7102) Business Description

Traded in Other Exchanges
Address
1-1,Sanbonmatsu-cho, Atsuta-ku, Nagoya, JPN, 456-8691
Nippon Sharyo Ltd is a Japan-based company engaged in the manufacture of railway rolling stock. The company operates through three segments. Its Railway rolling stock segment consists of manufacture and sales of rolling stock. The Transportation equipment and steel structure segment include production and trade of transportation equipment such as freight cars, tank trucks, heavy-duty industrial vehicles, and roadway and railway bridges. Its Construction equipment segment comprises of pile driving rigs, crawler cranes, casing rotators, portable diesel generator sets and emergency generators.

Nippon Sharyo (TSE:7102) Headlines

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