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Nakabayashi Co (TSE:7987) Gross Margin % : 22.19% (As of Dec. 2023)


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What is Nakabayashi Co Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Nakabayashi Co's Gross Profit for the three months ended in Dec. 2023 was 円3,554 Mil. Nakabayashi Co's Revenue for the three months ended in Dec. 2023 was 円16,016 Mil. Therefore, Nakabayashi Co's Gross Margin % for the quarter that ended in Dec. 2023 was 22.19%.


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

TSE:7987' s Gross Margin % Range Over the Past 10 Years
Min: 23.8   Med: 25.21   Max: 26.74
Current: 23.8


During the past 13 years, the highest Gross Margin % of Nakabayashi Co was 26.74%. The lowest was 23.80%. And the median was 25.21%.

TSE:7987's Gross Margin % is ranked worse than
69.41% of 984 companies
in the Business Services industry
Industry Median: 34.595 vs TSE:7987: 23.80

Nakabayashi Co had a gross margin of 22.19% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Nakabayashi Co was -0.40% per year.


Nakabayashi Co Gross Margin % Historical Data

The historical data trend for Nakabayashi Co'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.

Nakabayashi Co Gross Margin % Chart

Nakabayashi Co 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 24.65 25.37 26.74 25.85 24.10

Nakabayashi Co 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 22.19 24.98 23.74 24.26 22.19

Competitive Comparison of Nakabayashi Co's Gross Margin %

For the Specialty Business Services subindustry, Nakabayashi Co'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.


Nakabayashi Co's Gross Margin % Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, Nakabayashi Co's Gross Margin % distribution charts can be found below:

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



Nakabayashi Co Gross Margin % Calculation

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

Nakabayashi Co'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 )
=14843 / 61581
=(Revenue - Cost of Goods Sold) / Revenue
=(61581 - 46738) / 61581
=24.10 %

Nakabayashi Co'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 )
=3554 / 16016
=(Revenue - Cost of Goods Sold) / Revenue
=(16016 - 12462) / 16016
=22.19 %

* 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.


Nakabayashi Co  (TSE:7987) 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

Nakabayashi Co had a gross margin of 22.19% 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.


Nakabayashi Co Gross Margin % Related Terms

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Nakabayashi Co (TSE:7987) Business Description

Traded in Other Exchanges
N/A
Address
5-1, Higashi-Sakashita, 2-Chome, Itabashi-Ku, Tokyo, JPN, 174-8602
Nakabayashi Co Ltd is a Japan-based company. It mainly offers business equipment and services. Its principal business activities include consumer-communications business, office appliance business, and process solution business. The company offers various products and services including data printing service, solution service for the library, temporary-employment service, storage box, gadget accessories, paper for printing, office furniture, and waste paper recycling. Nakabayashi is also engaged in woody biomass power generation, Solar power generation and agriculture business.

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