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Hitachi Zosen (TSE:7004) Gross Margin % : 19.25% (As of Dec. 2023)


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What is Hitachi Zosen Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Hitachi Zosen's Gross Profit for the three months ended in Dec. 2023 was 円26,979 Mil. Hitachi Zosen's Revenue for the three months ended in Dec. 2023 was 円140,125 Mil. Therefore, Hitachi Zosen's Gross Margin % for the quarter that ended in Dec. 2023 was 19.25%.


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

TSE:7004' s Gross Margin % Range Over the Past 10 Years
Min: 15.05   Med: 16.31   Max: 17.82
Current: 17.26


During the past 13 years, the highest Gross Margin % of Hitachi Zosen was 17.82%. The lowest was 15.05%. And the median was 16.31%.

TSE:7004's Gross Margin % is ranked worse than
75.84% of 2934 companies
in the Industrial Products industry
Industry Median: 26.38 vs TSE:7004: 17.26

Hitachi Zosen had a gross margin of 19.25% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Hitachi Zosen was 1.10% per year.


Hitachi Zosen Gross Margin % Historical Data

The historical data trend for Hitachi Zosen'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.

Hitachi Zosen Gross Margin % Chart

Hitachi Zosen 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 16.16 17.21 17.82 16.33 16.92

Hitachi Zosen 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 17.62 19.07 14.66 14.92 19.25

Competitive Comparison of Hitachi Zosen's Gross Margin %

For the Pollution & Treatment Controls subindustry, Hitachi Zosen'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.


Hitachi Zosen's Gross Margin % Distribution in the Industrial Products Industry

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

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



Hitachi Zosen Gross Margin % Calculation

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

Hitachi Zosen'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 )
=83358 / 492692
=(Revenue - Cost of Goods Sold) / Revenue
=(492692 - 409334) / 492692
=16.92 %

Hitachi Zosen'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 )
=26979 / 140125
=(Revenue - Cost of Goods Sold) / Revenue
=(140125 - 113146) / 140125
=19.25 %

* 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.


Hitachi Zosen  (TSE:7004) 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

Hitachi Zosen had a gross margin of 19.25% 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.


Hitachi Zosen Gross Margin % Related Terms

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Hitachi Zosen (TSE:7004) Business Description

Traded in Other Exchanges
Address
7-89, Nanko-kita 1-chome, Suminoe-ku, Osaka, JPN, 559-8559
Hitachi Zosen Corp is a Japan-based industrial and engineering company. It engaged in the business domains of Green Energy, Social Infrastructure, and disaster prevention. The Company operations are classified into four reportable segments. Environmental Systems and Industrial Plants Segment include the production of environmental protection systems, water treatment systems, desalination and potabilization plants and chemical plants. Machinery segment includes the production of marine diesel engines, boilers, SCR systems, process equipment amongst others. Infrastructure segment includes bridge construction, water gates, and shield tunneling machines. Operations in the other businesses segment include the transportation business and warehousing business.

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