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Nifco (NIFCY) Gross Margin % : 26.92% (As of Dec. 2023)


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What is Nifco Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Nifco's Gross Profit for the three months ended in Dec. 2023 was $178 Mil. Nifco's Revenue for the three months ended in Dec. 2023 was $659 Mil. Therefore, Nifco's Gross Margin % for the quarter that ended in Dec. 2023 was 26.92%.

Warning Sign:

Nifco Inc gross margin has been in long-term decline. The average rate of decline per year is -1.2%.


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

NIFCY' s Gross Margin % Range Over the Past 10 Years
Min: 26.68   Med: 27.78   Max: 29.95
Current: 26.94


During the past 13 years, the highest Gross Margin % of Nifco was 29.95%. The lowest was 26.68%. And the median was 27.78%.

NIFCY's Gross Margin % is ranked better than
70.09% of 1267 companies
in the Vehicles & Parts industry
Industry Median: 19.36 vs NIFCY: 26.94

Nifco had a gross margin of 26.92% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Nifco was -1.20% per year.


Nifco Gross Margin % Historical Data

The historical data trend for Nifco'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.

Nifco Gross Margin % Chart

Nifco 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 26.94 27.11 27.67 26.96 26.68

Nifco 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 27.14 26.59 27.09 27.13 26.92

Competitive Comparison of Nifco's Gross Margin %

For the Auto Parts subindustry, Nifco'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.


Nifco's Gross Margin % Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Nifco's Gross Margin % distribution charts can be found below:

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



Nifco Gross Margin % Calculation

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

Nifco'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 )
=642.2 / 2407.307
=(Revenue - Cost of Goods Sold) / Revenue
=(2407.307 - 1765.079) / 2407.307
=26.68 %

Nifco'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 )
=177.5 / 659.418
=(Revenue - Cost of Goods Sold) / Revenue
=(659.418 - 481.874) / 659.418
=26.92 %

* 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.


Nifco  (OTCPK:NIFCY) 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

Nifco had a gross margin of 26.92% 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.


Nifco Gross Margin % Related Terms

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Nifco (NIFCY) Business Description

Traded in Other Exchanges
Address
Mita Bellju Building 20th Floor, 5-36-7 Shiba, Minato-ku, Tokyo, JPN, 108-8522
Nifco Inc manufactures and sells a variety of plastic components. The automotive components division of the company includes parts for fuel tanks, engines, interiors, exteriors, and electrical components. It also offers Home solutions and Fashion related products such as Damper, Cord Lock, Magnet Latch and Push Latch among others.

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