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GSI Co (SSE:5579) Gross Margin % : 26.28% (As of Dec. 2023)


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What is GSI Co Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. GSI Co's Gross Profit for the three months ended in Dec. 2023 was 円269 Mil. GSI Co's Revenue for the three months ended in Dec. 2023 was 円1,023 Mil. Therefore, GSI Co's Gross Margin % for the quarter that ended in Dec. 2023 was 26.28%.


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

SSE:5579' s Gross Margin % Range Over the Past 10 Years
Min: 23.7   Med: 24.98   Max: 25.49
Current: 23.7


During the past 2 years, the highest Gross Margin % of GSI Co was 25.49%. The lowest was 23.70%. And the median was 24.98%.

SSE:5579's Gross Margin % is ranked worse than
75.64% of 2636 companies
in the Software industry
Industry Median: 41.84 vs SSE:5579: 23.70

GSI Co had a gross margin of 26.28% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for GSI Co was 0.00% per year.


GSI Co Gross Margin % Historical Data

The historical data trend for GSI 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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GSI Co Gross Margin % Chart

GSI Co Annual Data
Trend Mar22 Mar23
Gross Margin %
25.49 24.47

GSI Co Quarterly Data
Mar22 Mar23 Jun23 Sep23 Dec23
Gross Margin % - - 22.87 21.92 26.28

Competitive Comparison of GSI Co's Gross Margin %

For the Information Technology Services subindustry, GSI 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.


GSI Co's Gross Margin % Distribution in the Software Industry

For the Software industry and Technology sector, GSI Co's Gross Margin % distribution charts can be found below:

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



GSI Co Gross Margin % Calculation

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

GSI 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 )
=894.2 / 3654.259
=(Revenue - Cost of Goods Sold) / Revenue
=(3654.259 - 2760.082) / 3654.259
=24.47 %

GSI 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 )
=268.8 / 1022.961
=(Revenue - Cost of Goods Sold) / Revenue
=(1022.961 - 754.172) / 1022.961
=26.28 %

* 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.


GSI Co  (SSE:5579) 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

GSI Co had a gross margin of 26.28% 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.


GSI Co Gross Margin % Related Terms

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GSI Co (SSE:5579) Business Description

Traded in Other Exchanges
N/A
Address
Kita 7-jo Nishi 1-1-2, SE Sapporo Building 13th Floor, Kita-ku, Sapporo, JPN, 060-0807
GSI Co Ltd is engaged in providing IT solution services that satisfy its customers. It is a system development business that specializes in providing system development to companies that are struggling with a lack of IT service development capabilities to utilize corporate digital technology.

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