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Synclayer (TSE:1724) Gross Margin % : 24.68% (As of Dec. 2023)


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What is Synclayer Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Synclayer's Gross Profit for the three months ended in Dec. 2023 was 円757 Mil. Synclayer's Revenue for the three months ended in Dec. 2023 was 円3,067 Mil. Therefore, Synclayer's Gross Margin % for the quarter that ended in Dec. 2023 was 24.68%.

Warning Sign:

Synclayer Inc gross margin has been in long-term decline. The average rate of decline per year is -1.9%.


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

TSE:1724' s Gross Margin % Range Over the Past 10 Years
Min: 17.58   Med: 22.02   Max: 25.22
Current: 21.39


During the past 13 years, the highest Gross Margin % of Synclayer was 25.22%. The lowest was 17.58%. And the median was 22.02%.

TSE:1724's Gross Margin % is ranked worse than
56.54% of 2439 companies
in the Hardware industry
Industry Median: 24.37 vs TSE:1724: 21.39

Synclayer had a gross margin of 24.68% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Synclayer was -1.90% per year.


Synclayer Gross Margin % Historical Data

The historical data trend for Synclayer'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.

Synclayer Gross Margin % Chart

Synclayer Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 23.42 22.23 22.80 20.80 21.39

Synclayer 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 22.97 22.19 15.05 22.69 24.68

Competitive Comparison of Synclayer's Gross Margin %

For the Communication Equipment subindustry, Synclayer'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.


Synclayer's Gross Margin % Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Synclayer's Gross Margin % distribution charts can be found below:

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



Synclayer Gross Margin % Calculation

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

Synclayer'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 )
=2234 / 10443
=(Revenue - Cost of Goods Sold) / Revenue
=(10443 - 8209) / 10443
=21.39 %

Synclayer'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 )
=757 / 3067
=(Revenue - Cost of Goods Sold) / Revenue
=(3067 - 2310) / 3067
=24.68 %

* 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.


Synclayer  (TSE:1724) 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

Synclayer had a gross margin of 24.68% 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.


Synclayer Gross Margin % Related Terms

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Synclayer (TSE:1724) Business Description

Traded in Other Exchanges
N/A
Address
2-21-18 Chiyoda, Naka-ku, Nagoya, JPN
Synclayer Inc is engaged in design, construction, maintenance and consultant related to cable television system, and information communication system, production, purchase and sale of cable television system equipment, information communication system equipment and their peripheral equipment, and provide information on introduction of cable television system, information communication system, and education and guidance.

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