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Sato Holdings (TSE:6287) Gross Margin % : 40.47% (As of Mar. 2024)


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What is Sato Holdings Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Sato Holdings's Gross Profit for the three months ended in Mar. 2024 was 円14,582 Mil. Sato Holdings's Revenue for the three months ended in Mar. 2024 was 円36,031 Mil. Therefore, Sato Holdings's Gross Margin % for the quarter that ended in Mar. 2024 was 40.47%.

Warning Sign:

Sato Holdings Corp gross margin has been in long-term decline. The average rate of decline per year is -1.6%.


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

TSE:6287' s Gross Margin % Range Over the Past 10 Years
Min: 39.69   Med: 42.48   Max: 43.62
Current: 41.21


During the past 13 years, the highest Gross Margin % of Sato Holdings was 43.62%. The lowest was 39.69%. And the median was 42.48%.

TSE:6287's Gross Margin % is ranked better than
81.75% of 2942 companies
in the Industrial Products industry
Industry Median: 26.4 vs TSE:6287: 41.21

Sato Holdings had a gross margin of 40.47% for the quarter that ended in Mar. 2024 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Sato Holdings was -1.60% per year.


Sato Holdings Gross Margin % Historical Data

The historical data trend for Sato Holdings'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.

Sato Holdings Gross Margin % Chart

Sato Holdings Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 43.12 41.94 40.39 39.69 41.21

Sato Holdings Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 39.53 40.23 41.96 42.10 40.47

Competitive Comparison of Sato Holdings's Gross Margin %

For the Business Equipment & Supplies subindustry, Sato Holdings'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.


Sato Holdings's Gross Margin % Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Sato Holdings's Gross Margin % distribution charts can be found below:

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



Sato Holdings Gross Margin % Calculation

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

Sato Holdings's Gross Margin for the fiscal year that ended in Mar. 2024 is calculated as

Gross Margin % (A: Mar. 2024 )=Gross Profit (A: Mar. 2024 ) / Revenue (A: Mar. 2024 )
=59117 / 143446
=(Revenue - Cost of Goods Sold) / Revenue
=(143446 - 84329) / 143446
=41.21 %

Sato Holdings's Gross Margin for the quarter that ended in Mar. 2024 is calculated as


Gross Margin % (Q: Mar. 2024 )=Gross Profit (Q: Mar. 2024 ) / Revenue (Q: Mar. 2024 )
=14582 / 36031
=(Revenue - Cost of Goods Sold) / Revenue
=(36031 - 21449) / 36031
=40.47 %

* 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.


Sato Holdings  (TSE:6287) 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

Sato Holdings had a gross margin of 40.47% for the quarter that ended in Mar. 2024 => Durable competitive advantage


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.


Sato Holdings Gross Margin % Related Terms

Thank you for viewing the detailed overview of Sato Holdings's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Sato Holdings (TSE:6287) Business Description

Traded in Other Exchanges
N/A
Address
1-7-1 Shimomeguro, Knowledge Plaza, Meguro-ku, Tokyo, JPN, 153-0064
Sato Holdings Corp is an Electronic Components company. Sato Holdings has four business segments divided by region: Japan, America, Europe, and Asia & Oceania. The company manufactures and sells data collections systems and labeling products across these four geographic regions. Furthermore, the company is engaged in a variety of business-to-business operations such as cargo delivery, printing services, application software development, and real estate businesses. The company earns the vast majority of its revenue in Japan.

Sato Holdings (TSE:6287) Headlines

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