Nippon Soda Co (TSE:4041) Gross Margin % : 26.47% (As of Dec. 2023)

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What is Nippon Soda Co Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Nippon Soda Co's Gross Profit for the three months ended in Dec. 2023 was 円9,648 Mil. Nippon Soda Co's Revenue for the three months ended in Dec. 2023 was 円36,453 Mil. Therefore, Nippon Soda Co's Gross Margin % for the quarter that ended in Dec. 2023 was 26.47%.

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

TSE:4041' s Gross Margin % Range Over the Past 10 Years
Min: 24.51 Med: 26.08 Max: 28.52
Current: 26.92

During the past 13 years, the highest Gross Margin % of Nippon Soda Co was 28.52%. The lowest was 24.51%. And the median was 26.08%.

TSE:4041's Gross Margin % is ranked better than
61.94% of 1508 companies
in the Chemicals industry
Industry Median: 22.245 vs TSE:4041: 26.92

Nippon Soda Co had a gross margin of 26.47% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Nippon Soda Co was 2.30% per year.

Nippon Soda Co Gross Margin % Historical Data

The historical data trend for Nippon Soda 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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Nippon Soda Co Gross Margin % Chart

Nippon Soda Co Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Gross Margin %

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25.41

26.20

27.82

27.60

28.52

Nippon Soda 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															29.68	26.19	30.76	24.34	26.47

Competitive Comparison of Nippon Soda Co's Gross Margin %

For the Chemicals subindustry, Nippon Soda 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.

Nippon Soda Co's Gross Margin % Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Nippon Soda Co's Gross Margin % distribution charts can be found below:

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

Nippon Soda Co Gross Margin % Calculation

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

Nippon Soda 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 )
	=	49278	/	172811
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(172811 - 123533)	/	172811
	=	28.52 %

Nippon Soda 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 )
	=	9648	/	36453
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(36453 - 26805)	/	36453
	=	26.47 %

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.

Nippon Soda Co (TSE:4041) 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

Nippon Soda Co had a gross margin of 26.47% 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.

Nippon Soda Co Gross Margin % Related Terms

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Nippon Soda Co (TSE:4041) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » Nippon Soda Co Ltd (TSE:4041) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

2-2-1, Ohtemachi, Chiyoda-ku, Tokyo, JPN, 100-8165

Website

https://www.nippon-soda.co.jp

Nippon Soda manufactures and sells chemical products and operates in three major and three minor segments. The chemicals segment sells caustic soda, sodium derivatives, and specialty chemicals, which are used to make household cleaning products and pharmaceuticals. The agrochemicals segment sells pesticides, fungicides, and herbicides to the agricultural industry. The trading segment offers chemicals, synthetic resins, and industrial machineries and devices. The company generates additional revenue from its minor segments: transportation, warehousing, and construction services. These segments are engaged in the transportation and warehousing of chemical products, as well as in plant construction and civil engineering services.

Nippon Soda Co (TSE:4041) Headlines

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