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Nihon Kohden (TSE:6849) Gross Margin % : 49.92% (As of Dec. 2023)


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What is Nihon Kohden Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Nihon Kohden's Gross Profit for the three months ended in Dec. 2023 was 円26,277 Mil. Nihon Kohden's Revenue for the three months ended in Dec. 2023 was 円52,633 Mil. Therefore, Nihon Kohden's Gross Margin % for the quarter that ended in Dec. 2023 was 49.92%.


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

TSE:6849' s Gross Margin % Range Over the Past 10 Years
Min: 47.49   Med: 48.6   Max: 53.18
Current: 50.74


During the past 13 years, the highest Gross Margin % of Nihon Kohden was 53.18%. The lowest was 47.49%. And the median was 48.60%.

TSE:6849's Gross Margin % is ranked worse than
53.89% of 796 companies
in the Medical Devices & Instruments industry
Industry Median: 53.295 vs TSE:6849: 50.74

Nihon Kohden had a gross margin of 49.92% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Nihon Kohden was 2.20% per year.


Nihon Kohden Gross Margin % Historical Data

The historical data trend for Nihon Kohden'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.

Nihon Kohden Gross Margin % Chart

Nihon Kohden Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 48.09 48.28 51.19 53.18 51.27

Nihon Kohden 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 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 51.59 52.27 49.98 50.45 49.92

Competitive Comparison of Nihon Kohden's Gross Margin %

For the Medical Devices subindustry, Nihon Kohden'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.


Nihon Kohden's Gross Margin % Distribution in the Medical Devices & Instruments Industry

For the Medical Devices & Instruments industry and Healthcare sector, Nihon Kohden's Gross Margin % distribution charts can be found below:

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



Nihon Kohden Gross Margin % Calculation

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

Nihon Kohden'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 )
=105926 / 206603
=(Revenue - Cost of Goods Sold) / Revenue
=(206603 - 100677) / 206603
=51.27 %

Nihon Kohden'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 )
=26277 / 52633
=(Revenue - Cost of Goods Sold) / Revenue
=(52633 - 26356) / 52633
=49.92 %

* 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.


Nihon Kohden  (TSE:6849) 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

Nihon Kohden had a gross margin of 49.92% for the quarter that ended in Dec. 2023 => 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.


Nihon Kohden Gross Margin % Related Terms

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Nihon Kohden (TSE:6849) Business Description

Traded in Other Exchanges
Address
31-4 Nishiochiai 1-chome, Shinjuku-ku, Tokyo, JPN, 1618560
Nihon Kohden Corp manufactures electronic medical equipment. The firm operates in four categories: physiological measuring equipment, treatment equipment, patient monitors, and other medical equipment. The patient monitors segment contributes the largest proportion of revenue and includes continuous monitoring instruments and clinical information systems. The physiological measuring equipment segment sells electroencephalographs, electrocardiographs, and diagnostic information systems. The treatment equipment segment sells defibrillators, pacemakers, ventilators, and related consumables. The other medical equipment segment sells automated hematology analyzers, ultrasound diagnostic equipment, and other laboratory equipment. Nihon Kohden generates the majority of its revenue in Japan.

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