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The Japan Steel Works (The Japan Steel Works) Gross Margin % : 23.10% (As of Dec. 2023)


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What is The Japan Steel Works Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. The Japan Steel Works's Gross Profit for the three months ended in Dec. 2023 was $102 Mil. The Japan Steel Works's Revenue for the three months ended in Dec. 2023 was $442 Mil. Therefore, The Japan Steel Works's Gross Margin % for the quarter that ended in Dec. 2023 was 23.10%.

Warning Sign:

The Japan Steel Works Ltd gross margin has been in long-term decline. The average rate of decline per year is -2.4%.


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

JPSWY' s Gross Margin % Range Over the Past 10 Years
Min: 18.23   Med: 21.02   Max: 24.32
Current: 22.91


During the past 13 years, the highest Gross Margin % of The Japan Steel Works was 24.32%. The lowest was 18.23%. And the median was 21.02%.

JPSWY's Gross Margin % is ranked worse than
60.57% of 2937 companies
in the Industrial Products industry
Industry Median: 26.42 vs JPSWY: 22.91

The Japan Steel Works had a gross margin of 23.10% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for The Japan Steel Works was -2.40% per year.


The Japan Steel Works Gross Margin % Historical Data

The historical data trend for The Japan Steel Works'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.

The Japan Steel Works Gross Margin % Chart

The Japan Steel Works 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 24.32 23.11 21.35 22.37 20.69

The Japan Steel Works 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 19.90 23.46 22.50 22.34 23.10

Competitive Comparison of The Japan Steel Works's Gross Margin %

For the Specialty Industrial Machinery subindustry, The Japan Steel Works'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.


The Japan Steel Works's Gross Margin % Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, The Japan Steel Works's Gross Margin % distribution charts can be found below:

* The bar in red indicates where The Japan Steel Works's Gross Margin % falls into.



The Japan Steel Works Gross Margin % Calculation

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

The Japan Steel Works'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 )
=369.4 / 1785.974
=(Revenue - Cost of Goods Sold) / Revenue
=(1785.974 - 1416.541) / 1785.974
=20.69 %

The Japan Steel Works'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 )
=102.2 / 442.439
=(Revenue - Cost of Goods Sold) / Revenue
=(442.439 - 340.238) / 442.439
=23.10 %

* 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.


The Japan Steel Works  (OTCPK:JPSWY) 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

The Japan Steel Works had a gross margin of 23.10% 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.


The Japan Steel Works Gross Margin % Related Terms

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The Japan Steel Works (The Japan Steel Works) Business Description

Traded in Other Exchanges
Address
Gate City Ohsaki-West Tower, 11-1, Osaki 1-chome, Shinagawa-ku, Tokyo, JPN, 141-0032
The Japan Steel Works Ltd is a Japan-based company that primarily operates through two segments. The steel and energy products segment provides steel components for turbine shafts, steel components for nuclear reactors, steel casting for power plant turbines, oil refining equipment, high-pressure steel tankers, wind turbine systems, and various other steel products. The industrial machinery products segment offers polyolefin pelletizers, injection molding machines, extruders, film and sheet machines, blow molding machines, defense equipment, and other industrial machinery and related services and solutions. The company generates the majority of its sales from Japan and China.

The Japan Steel Works (The Japan Steel Works) Headlines