Kitagawa (TSE:6317) Gross Margin % : 13.49% (As of Dec. 2023)

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What is Kitagawa Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Kitagawa's Gross Profit for the three months ended in Dec. 2023 was 円2,113 Mil. Kitagawa's Revenue for the three months ended in Dec. 2023 was 円15,660 Mil. Therefore, Kitagawa's Gross Margin % for the quarter that ended in Dec. 2023 was 13.49%.

Warning Sign:

Kitagawa Corp gross margin has been in long-term decline. The average rate of decline per year is -10.9%.

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

TSE:6317' s Gross Margin % Range Over the Past 10 Years
Min: 10.9 Med: 17.72 Max: 20.83
Current: 13.06

During the past 13 years, the highest Gross Margin % of Kitagawa was 20.83%. The lowest was 10.90%. And the median was 17.72%.

TSE:6317's Gross Margin % is ranked worse than
85.35% of 2929 companies
in the Industrial Products industry
Industry Median: 26.57 vs TSE:6317: 13.06

Kitagawa had a gross margin of 13.49% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Kitagawa was -10.90% per year.

Kitagawa Gross Margin % Historical Data

The historical data trend for Kitagawa'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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Kitagawa Gross Margin % Chart

Kitagawa Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Gross Margin %

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19.45

15.88

13.32

14.23

10.90

Kitagawa 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															8.22	12.22	14.64	12.10	13.49

Competitive Comparison of Kitagawa's Gross Margin %

For the Specialty Industrial Machinery subindustry, Kitagawa'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.

Kitagawa's Gross Margin % Distribution in the Industrial Products Industry

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

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

Kitagawa Gross Margin % Calculation

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

Kitagawa'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 )
	=	6509	/	59700
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(59700 - 53191)	/	59700
	=	10.90 %

Kitagawa'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 )
	=	2113	/	15660
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(15660 - 13547)	/	15660
	=	13.49 %

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.

Kitagawa (TSE:6317) 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

Kitagawa had a gross margin of 13.49% for the quarter that ended in Dec. 2023 => No sustainable 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.

Kitagawa Gross Margin % Related Terms

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Kitagawa (TSE:6317) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Kitagawa Corp (TSE:6317) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

77-1 Motomachi, Fuchu-shi, Hiroshima, JPN, 726-8610

Website

https://www.kitagawa.com

Kitagawa Corp is the diversified machinery manufacturing company based in Japan. It is specialised in three core businesses: the production and development of casting and machining techniques of metal raw materials; supplying power chucks and numerically controlled rotary tables to the global machine tool industry; constructing custom-made concrete and recycling plants as well as providing construction machinery for various projects, including bridge erection and self-propelled multi-floor parking. The company has an operational presence across the United Kingdom, the United States of America, China, Taiwan, Australia, Germany and other regions.

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