IHI (TSE:7013) Gross Margin % : 26.48% (As of Dec. 2023)

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What is IHI Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. IHI's Gross Profit for the three months ended in Dec. 2023 was 円104,971 Mil. IHI's Revenue for the three months ended in Dec. 2023 was 円396,353 Mil. Therefore, IHI's Gross Margin % for the quarter that ended in Dec. 2023 was 26.48%.

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

TSE:7013' s Gross Margin % Range Over the Past 10 Years
Min: 10.15 Med: 17.13 Max: 20.84
Current: 10.15

During the past 13 years, the highest Gross Margin % of IHI was 20.84%. The lowest was 10.15%. And the median was 17.13%.

TSE:7013's Gross Margin % is ranked worse than
89.89% of 2937 companies
in the Industrial Products industry
Industry Median: 26.45 vs TSE:7013: 10.15

IHI had a gross margin of 26.48% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for IHI was 2.00% per year.

IHI Gross Margin % Historical Data

The historical data trend for IHI'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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IHI Gross Margin % Chart

IHI Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Gross Margin %

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18.72

18.41

16.17

17.85

20.84

IHI 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															23.12	19.14	19.51	-65.09	26.48

Competitive Comparison of IHI's Gross Margin %

For the Specialty Industrial Machinery subindustry, IHI'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.

IHI's Gross Margin % Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, IHI's Gross Margin % distribution charts can be found below:

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

IHI Gross Margin % Calculation

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

IHI'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 )
	=	282005	/	1352940
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(1352940 - 1070935)	/	1352940
	=	20.84 %

IHI'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 )
	=	104971	/	396353
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(396353 - 291382)	/	396353
	=	26.48 %

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.

IHI (TSE:7013) 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

IHI had a gross margin of 26.48% 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.

IHI Gross Margin % Related Terms

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IHI (TSE:7013) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » IHI Corp (TSE:7013) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

IHICY:USA IHICF:USA IWJ:Germany

Address

1-1, Toyosu 3-chome, Koto-ku, Tokyo, JPN, 135-8710

Website

http://www.ihi.co.jp

IHI Corp produces power systems and plants, large steel structures, marine machinery, aerospace engines, and other industrial solutions. The global company attempts to develop innovative solutions and engineering capabilities for multiple projects and maintenance platforms. Its products cover a wide range of functions, including energy supply and distribution, urban development, enhancing manufacturing processes, and utilizing technologies for air travel. Revenues are roughly split between the company's four business areas: resources, energy, and environment; social infrastructure and offshore facilities; industrial systems and general-purpose machinery; and aero engine, space, and defense. Asia accounts for the majority of total sales, with China and Japan being key regions.

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