NEC Capital Solutions (TSE:8793) Gross Margin % : 12.36% (As of Dec. 2023)

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What is NEC Capital Solutions Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. NEC Capital Solutions's Gross Profit for the three months ended in Dec. 2023 was 円7,854 Mil. NEC Capital Solutions's Revenue for the three months ended in Dec. 2023 was 円63,549 Mil. Therefore, NEC Capital Solutions's Gross Margin % for the quarter that ended in Dec. 2023 was 12.36%.

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

TSE:8793' s Gross Margin % Range Over the Past 10 Years
Min: 9.72 Med: 12.44 Max: 13.35
Current: 11.6

During the past 13 years, the highest Gross Margin % of NEC Capital Solutions was 13.35%. The lowest was 9.72%. And the median was 12.44%.

TSE:8793's Gross Margin % is ranked worse than
90.3% of 990 companies
in the Business Services industry
Industry Median: 34.395 vs TSE:8793: 11.60

NEC Capital Solutions had a gross margin of 12.36% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for NEC Capital Solutions was -0.30% per year.

NEC Capital Solutions Gross Margin % Historical Data

The historical data trend for NEC Capital Solutions'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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NEC Capital Solutions Gross Margin % Chart

NEC Capital Solutions Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Gross Margin %

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12.54

12.50

11.67

12.69

12.37

NEC Capital Solutions 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															11.99	10.60	11.26	12.12	12.36

Competitive Comparison of NEC Capital Solutions's Gross Margin %

For the Rental & Leasing Services subindustry, NEC Capital Solutions'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.

NEC Capital Solutions's Gross Margin % Distribution in the Business Services Industry

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

* The bar in red indicates where NEC Capital Solutions's Gross Margin % falls into.

NEC Capital Solutions Gross Margin % Calculation

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

NEC Capital Solutions'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 )
	=	31920	/	258107
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(258107 - 226187)	/	258107
	=	12.37 %

NEC Capital Solutions'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 )
	=	7854	/	63549
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(63549 - 55695)	/	63549
	=	12.36 %

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.

NEC Capital Solutions (TSE:8793) 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

NEC Capital Solutions had a gross margin of 12.36% 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.

NEC Capital Solutions Gross Margin % Related Terms

Thank you for viewing the detailed overview of NEC Capital Solutions's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.

NEC Capital Solutions (TSE:8793) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » NEC Capital Solutions Ltd (TSE:8793) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

29-11 Shiba 5-chome, Minato-ku, Tokyo, JPN

Website

http://www.necap.co.jp

NEC Capital Solutions Ltd is a Japan-based company engaged in the provision of financial services. It operates through four segments. The company's Leasing and installment segment are involved in the purchase and sale of processing equipment, communications equipment, office equipment, and industrial machinery. Its Finance segment consists of factoring and loans and other business. The RISA segment provides investment advice, fund business, and others. Its other business comprises of the sale of secondhand products, as well as the collection of transaction fees.

NEC Capital Solutions (TSE:8793) Headlines

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