Hokuriku Gas Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -5.3%.
The historical rank and industry rank for Hokuriku Gas Co's Gross Margin % or its related term are showing as below:
TSE:9537'
s Gross Margin % Range Over the Past 10 Years
Min: 29.67 Med: 40.45 Max: 45.85
Current: 31.31
During the past 13 years, the highestGross Margin % of Hokuriku Gas Co was 45.85%. The lowest was 29.67%. And the median was 40.45%.
TSE:9537's Gross Margin % is ranked better than 53.09% of 501
companies
in the Utilities - Regulated industry
Industry Median: 29.24
vs TSE:9537: 31.31
Hokuriku Gas Co had a gross margin of 27.42% for the quarter that ended in Dec. 2023 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Hokuriku Gas Co was -5.30% per year.
Hokuriku Gas Co Gross Margin % Historical Data
The historical data trend for Hokuriku 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 Hokuriku Gas Co's Gross Margin %
For the Utilities - Regulated Gas subindustry, Hokuriku 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.
Hokuriku Gas Co's Gross Margin % Distribution in the Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Hokuriku Gas Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Hokuriku 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.
Hokuriku Gas Co (TSE:9537) 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
Hokuriku Gas Co had a gross margin of 27.42% 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.
Hokuriku Gas Co Gross Margin % Related Terms
Thank you for viewing the detailed overview of Hokuriku Gas Co's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Hokuriku Gas Co Ltd engages in the manufacture, supply, and sale of city gas, and gas-related equipment. It is involved in the manufacture, supply and sale of city gas, the operation of gas works, as well as the sale of gas equipment. The firm also engages in the sale of liquefied petroleum gas (LPG) and LPG equipment, the operation of LPG piping works, gas works and civil engineering works, the design, installation, maintenance, security and inspection of gas equipment, the sale, installation and meter reading of housing facilities and equipment, the leasing and management of buildings, the leasing of business equipment and vehicles, It also undertakes gas construction contracts; and sells gas appliances.
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