Ariake Japan Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -5.2%.
The historical rank and industry rank for Ariake Japan Co's Gross Margin % or its related term are showing as below:
FRA:5EF'
s Gross Margin % Range Over the Past 10 Years
Min: 27.96 Med: 34.52 Max: 36.97
Current: 27.96
During the past 13 years, the highestGross Margin % of Ariake Japan Co was 36.97%. The lowest was 27.96%. And the median was 34.52%.
FRA:5EF's Gross Margin % is ranked better than 57.8% of 1808
companies
in the Consumer Packaged Goods industry
Industry Median: 25.085
vs FRA:5EF: 27.96
Ariake Japan Co had a gross margin of 28.34% for the quarter that ended in Dec. 2023 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Ariake Japan Co was -5.20% per year.
Ariake Japan Co Gross Margin % Historical Data
The historical data trend for Ariake Japan 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.
Competitive Comparison of Ariake Japan Co's Gross Margin %
For the Packaged Foods subindustry, Ariake Japan 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.
Ariake Japan Co's Gross Margin % Distribution in the Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Ariake Japan Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Ariake Japan Co's Gross Margin % falls into.
* 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.
Ariake Japan Co (FRA:5EF) 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
Ariake Japan Co had a gross margin of 28.34% 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.
Ariake Japan Co Gross Margin % Related Terms
Thank you for viewing the detailed overview of Ariake Japan Co's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Ariake Japan Co Ltd is engaged in manufacturing, processing, and sale of natural seasonings, marine products, as well as agricultural and livestock products. The company also provides technical guidance related to its products and manages restaurants. The products are categorized into different uses including products for instant noodle manufacturers such as soup bases; products for hotels and restaurants such as sauces and soup stock; products for food processing companies such as curries, ham, and sausages; and products for export. The company primarily operates in Japan and also owns manufacturing sites in multiple countries such as China, the U.S., Netherlands, France, and Belgium.
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