Heiwa (TSE:6412) Gross Margin % : 35.37% (As of Dec. 2023)

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What is Heiwa Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Heiwa's Gross Profit for the three months ended in Dec. 2023 was 円12,764 Mil. Heiwa's Revenue for the three months ended in Dec. 2023 was 円36,089 Mil. Therefore, Heiwa's Gross Margin % for the quarter that ended in Dec. 2023 was 35.37%.

Warning Sign:

Heiwa Corp gross margin has been in long-term decline. The average rate of decline per year is -3.4%.

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

TSE:6412' s Gross Margin % Range Over the Past 10 Years
Min: 26.95 Med: 37.6 Max: 40.21
Current: 31.62

During the past 13 years, the highest Gross Margin % of Heiwa was 40.21%. The lowest was 26.95%. And the median was 37.60%.

TSE:6412's Gross Margin % is ranked worse than
69.23% of 767 companies
in the Travel & Leisure industry
Industry Median: 43.23 vs TSE:6412: 31.62

Heiwa had a gross margin of 35.37% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Heiwa was -3.40% per year.

Heiwa Gross Margin % Historical Data

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

Heiwa Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Gross Margin %

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38.51

38.95

26.95

27.48

34.66

Heiwa 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															41.47	19.60	35.82	32.61	35.37

Competitive Comparison of Heiwa's Gross Margin %

For the Leisure subindustry, Heiwa'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.

Heiwa's Gross Margin % Distribution in the Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, Heiwa's Gross Margin % distribution charts can be found below:

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

Heiwa Gross Margin % Calculation

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

Heiwa'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 )
	=	49313	/	142290
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(142290 - 92977)	/	142290
	=	34.66 %

Heiwa'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 )
	=	12764	/	36089
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(36089 - 23325)	/	36089
	=	35.37 %

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.

Heiwa (TSE:6412) 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

Heiwa had a gross margin of 35.37% 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.

Heiwa Gross Margin % Related Terms

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Heiwa (TSE:6412) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Travel & Leisure » Heiwa Corp (TSE:6412) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

1 Chome-16-1 Higashiueno, Taito-ku, Tokyo, JPN, 110-0015

Website

http://www.heiwanet.co.jp

Heiwa Corp is a gambling company involved in the manufacturing and sales of pachinko and pachislot machines. The company operates in two business segments: game machines and golf. The game machine business develops pachinko machines, a gambling device with pinball-like characteristics, which are sold to pachinko parlors throughout Japan. Pachinko parlors allow users to purchase small steel balls, which are utilized in pachinko machines under the objective of winning more balls, which can then be exchanged for prizes. Pachislot machines, which are a similar gambling device with characteristics of pachinko and slot machines, are developed in a similar manner. The company's golf segment operates a number of golf courses. Heiwa generates the vast majority of its revenue in Japan.

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