Eisai Co (TSE:4523) Gross Margin % : 78.12% (As of Dec. 2023)

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What is Eisai Co Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Eisai Co's Gross Profit for the three months ended in Dec. 2023 was 円138,822 Mil. Eisai Co's Revenue for the three months ended in Dec. 2023 was 円177,703 Mil. Therefore, Eisai Co's Gross Margin % for the quarter that ended in Dec. 2023 was 78.12%.

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

TSE:4523' s Gross Margin % Range Over the Past 10 Years
Min: 63.66 Med: 69.42 Max: 78.95
Current: 78.95

During the past 13 years, the highest Gross Margin % of Eisai Co was 78.95%. The lowest was 63.66%. And the median was 69.42%.

TSE:4523's Gross Margin % is ranked better than
91.32% of 991 companies
in the Drug Manufacturers industry
Industry Median: 46.77 vs TSE:4523: 78.95

Eisai Co had a gross margin of 78.12% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Eisai Co was 2.60% per year.

Eisai Co Gross Margin % Historical Data

The historical data trend for Eisai 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.

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Eisai Co Gross Margin % Chart

Eisai Co Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Gross Margin %

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71.30

74.74

75.03

76.88

76.11

Eisai Co 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															75.08	80.54	77.70	79.38	78.12

Competitive Comparison of Eisai Co's Gross Margin %

For the Drug Manufacturers - Specialty & Generic subindustry, Eisai 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.

Eisai Co's Gross Margin % Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Eisai Co's Gross Margin % distribution charts can be found below:

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

Eisai Co Gross Margin % Calculation

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

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

Gross Margin % (A: Mar. 2023 )	=	Gross Profit (A: Mar. 2023 )	/	Revenue (A: Mar. 2023 )
	=	566566	/	744402
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(744402 - 177836)	/	744402
	=	76.11 %

Eisai Co'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 )
	=	138822	/	177703
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(177703 - 38881)	/	177703
	=	78.12 %

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.

Eisai Co (TSE:4523) 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

Eisai Co had a gross margin of 78.12% for the quarter that ended in Dec. 2023 => Durable 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.

Eisai Co Gross Margin % Related Terms

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Eisai Co (TSE:4523) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Eisai Co Ltd (TSE:4523) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

ESAIY:USA ESALF:USA EII:Germany

Address

4-6-10 Koishikawa, Bunkyo-ku, Tokyo, JPN, 112-8088

Website

http://www.eisai.co.jp

Eisai Co Ltd is a specialty and generic drug manufacturing company. The company's business consists of a pharmaceutical business and other businesses. The pharmaceutical business is categorized by region, including Japan, Americas, China, Asia, and Europe, Middle East, and Africa. Eisai also reports a consumer healthcare business for Japan. The vast majority of the company's revenue is derived by its Japanese pharmaceutical business, followed by its Americas pharmaceuticals segment. The company utilizes licensing strategies in order to expand its research, development, manufacturing, and marketing capabilities.

Eisai Co (TSE:4523) Headlines

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