Gross Margin % is calculated as gross profit divided by its revenue. Toho Gas Co's Gross Profit for the
three
months ended in Dec. 2023 was 円35,297 Mil. Toho Gas Co's Revenue for the
three
months ended in Dec. 2023 was 円148,678 Mil. Therefore, Toho Gas Co's Gross Margin % for the quarter that ended in Dec. 2023 was 23.74%.
Warning Sign:
Toho Gas Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -4.5%.
The historical rank and industry rank for Toho Gas Co's Gross Margin % or its related term are showing as below:
TSE:9533'
s Gross Margin % Range Over the Past 10 Years
Min: 25.52 Med: 31.83 Max: 42.05
Current: 27.1
During the past 13 years, the highestGross Margin % of Toho Gas Co was 42.05%. The lowest was 25.52%. And the median was 31.83%.
TSE:9533's Gross Margin % is ranked worse than 53.69% of 501
companies
in the Utilities - Regulated industry
Industry Median: 29.24
vs TSE:9533: 27.10
Toho Gas Co had a gross margin of 23.74% for the quarter that ended in Dec. 2023 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Toho Gas Co was -4.50% per year.
Toho Gas Co Gross Margin % Historical Data
The historical data trend for Toho Gas 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.
Competitive Comparison of Toho Gas Co's Gross Margin %
For the Utilities - Regulated Gas subindustry, Toho Gas 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.
Toho Gas Co's Gross Margin % Distribution in the Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Toho Gas Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Toho Gas Co's Gross Margin % falls into.
* 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.
Toho Gas Co (TSE:9533) 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
Toho Gas Co had a gross margin of 23.74% 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.
Toho Gas Co Gross Margin % Related Terms
Thank you for viewing the detailed overview of Toho Gas Co's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Toho Gas Co Ltd is a Japanese natural gas provider operating in the Tokai region of the Japanese island of Honshu. Toho Gas is mainly involved in the supply and distribution of natural gas and liquefied petroleum gas, or LPG, to urban areas within Tokai. The company segments its operations into Gas Sales, Gas Appliance Sales and Related Construction, and LPG and Other Energies business units. Toho Gas's Gas Sales division derives the vast majority of the company's total revenue from the sale and supply of natural gas to the many manufacturing plants and industrial customers that inhabit its home region. The company's sales of LPG and thermal energy to mainly industrial consumers also represent a significant revenue stream. Toho Gas is one of the largest city gas providers in Japan.
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