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BroadBand Tower (TSE:3776) Gross Margin % : 24.58% (As of Dec. 2023)


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What is BroadBand Tower Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. BroadBand Tower's Gross Profit for the three months ended in Dec. 2023 was 円821 Mil. BroadBand Tower's Revenue for the three months ended in Dec. 2023 was 円3,339 Mil. Therefore, BroadBand Tower's Gross Margin % for the quarter that ended in Dec. 2023 was 24.58%.

Warning Sign:

BroadBand Tower Inc gross margin has been in long-term decline. The average rate of decline per year is -4.9%.


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

TSE:3776' s Gross Margin % Range Over the Past 10 Years
Min: 16.72   Med: 20.92   Max: 26.82
Current: 20.55


During the past 13 years, the highest Gross Margin % of BroadBand Tower was 26.82%. The lowest was 16.72%. And the median was 20.92%.

TSE:3776's Gross Margin % is ranked worse than
85.88% of 354 companies
in the Telecommunication Services industry
Industry Median: 48.97 vs TSE:3776: 20.55

BroadBand Tower had a gross margin of 24.58% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for BroadBand Tower was -4.90% per year.


BroadBand Tower Gross Margin % Historical Data

The historical data trend for BroadBand Tower'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.

BroadBand Tower Gross Margin % Chart

BroadBand Tower Annual Data
Trend Jun14 Jun15 Jun16 Jun17 Jun18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 24.06 24.68 23.22 21.28 20.55

BroadBand Tower Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 19.97 18.82 18.71 20.13 24.58

Competitive Comparison of BroadBand Tower's Gross Margin %

For the Telecom Services subindustry, BroadBand Tower'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.


BroadBand Tower's Gross Margin % Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, BroadBand Tower's Gross Margin % distribution charts can be found below:

* The bar in red indicates where BroadBand Tower's Gross Margin % falls into.



BroadBand Tower Gross Margin % Calculation

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

BroadBand Tower's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )=Gross Profit (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=2721.3 / 13243.707
=(Revenue - Cost of Goods Sold) / Revenue
=(13243.707 - 10522.388) / 13243.707
=20.55 %

BroadBand Tower'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 )
=820.7 / 3339.003
=(Revenue - Cost of Goods Sold) / Revenue
=(3339.003 - 2518.32) / 3339.003
=24.58 %

* 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.


BroadBand Tower  (TSE:3776) 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

BroadBand Tower had a gross margin of 24.58% for the quarter that ended in Dec. 2023 => 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.


BroadBand Tower Gross Margin % Related Terms

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BroadBand Tower (TSE:3776) Business Description

Traded in Other Exchanges
N/A
Address
4-2-6 Akasaka, Tokyo, JPN
BroadBand Tower, Inc. is a Japan-based company engaged in the provision of internet services. The company offers various services such as portal and e-commerce sites, video distribution sites, and social media and others. It operates through two businesses namely computer platform and fashion industry platform. The computer platform business includes data center and cloud services, storage products, and the internet of things. Its fashion industry platform business provides electronic-commerce support services, apparel planning, manufacturing and marketing and television shopping support services.

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