GDEP Advance (TSE:5885) Gross Margin % : 21.00% (As of Feb. 2024)

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What is GDEP Advance Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. GDEP Advance's Gross Profit for the three months ended in Feb. 2024 was 円288 Mil. GDEP Advance's Revenue for the three months ended in Feb. 2024 was 円1,373 Mil. Therefore, GDEP Advance's Gross Margin % for the quarter that ended in Feb. 2024 was 21.00%.

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

TSE:5885' s Gross Margin % Range Over the Past 10 Years
Min: 17.1 Med: 21.2 Max: 23.86
Current: 22.53

During the past 3 years, the highest Gross Margin % of GDEP Advance was 23.86%. The lowest was 17.10%. And the median was 21.20%.

TSE:5885's Gross Margin % is ranked worse than
54.04% of 2439 companies
in the Hardware industry
Industry Median: 24.37 vs TSE:5885: 22.53

GDEP Advance had a gross margin of 21.00% for the quarter that ended in Feb. 2024 => Competition eroding margins

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

GDEP Advance Gross Margin % Historical Data

The historical data trend for GDEP Advance'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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GDEP Advance Gross Margin % Chart

GDEP Advance Annual Data

Trend

May21

May22

May23

Gross Margin %

17.10

21.20

23.86

GDEP Advance Quarterly Data
	May21	May22	Feb23	May23	Aug23	Nov23	Feb24
Gross Margin %	Get a 7-Day Free Trial			-	25.04	27.16	19.68	21.00

Competitive Comparison of GDEP Advance's Gross Margin %

For the Computer Hardware subindustry, GDEP Advance'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.

GDEP Advance's Gross Margin % Distribution in the Hardware Industry

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

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

GDEP Advance Gross Margin % Calculation

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

GDEP Advance's Gross Margin for the fiscal year that ended in May. 2023 is calculated as

Gross Margin % (A: May. 2023 )	=	Gross Profit (A: May. 2023 )	/	Revenue (A: May. 2023 )
	=	901.7	/	3778.824
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(3778.824 - 2877.098)	/	3778.824
	=	23.86 %

GDEP Advance's Gross Margin for the quarter that ended in Feb. 2024 is calculated as

Gross Margin % (Q: Feb. 2024 )	=	Gross Profit (Q: Feb. 2024 )	/	Revenue (Q: Feb. 2024 )
	=	288.3	/	1372.827
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(1372.827 - 1084.48)	/	1372.827
	=	21.00 %

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.

GDEP Advance (TSE:5885) 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

GDEP Advance had a gross margin of 21.00% for the quarter that ended in Feb. 2024 => 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.

GDEP Advance Gross Margin % Related Terms

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GDEP Advance (TSE:5885) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Hardware » GDEP Advance Inc (TSE:5885) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

3-4-33 Kokubuncho, 8th floor, Sendai Jozenji Building, Aoba-ku, Sendai, JPN, 980-0803

Website

https://info.gdep.co.jp

GDEP Advance Inc is engaged in the Sales Business of hardware and other products that enable advanced processing such as AI learning. The company's products include Graphic boards, Computing boards, FPGA boards, Deep learning boxes, fsv-rm1u4b, and others.

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