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Kubota (TSE:6326) Gross Margin % : 29.72% (As of Dec. 2023)


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What is Kubota Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Kubota's Gross Profit for the three months ended in Dec. 2023 was 円226,601 Mil. Kubota's Revenue for the three months ended in Dec. 2023 was 円762,480 Mil. Therefore, Kubota's Gross Margin % for the quarter that ended in Dec. 2023 was 29.72%.


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

TSE:6326' s Gross Margin % Range Over the Past 10 Years
Min: 25.61   Med: 29.09   Max: 30.38
Current: 29.02


During the past 13 years, the highest Gross Margin % of Kubota was 30.38%. The lowest was 25.61%. And the median was 29.09%.

TSE:6326's Gross Margin % is ranked better than
69.76% of 205 companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 24.35 vs TSE:6326: 29.02

Kubota had a gross margin of 29.72% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Kubota was -0.90% per year.


Kubota Gross Margin % Historical Data

The historical data trend for Kubota'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.

Kubota Gross Margin % Chart

Kubota Annual Data
Trend Mar14 Mar15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 29.16 28.86 28.76 25.61 29.02

Kubota 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 26.13 29.45 28.24 28.61 29.72

Competitive Comparison of Kubota's Gross Margin %

For the Farm & Heavy Construction Machinery subindustry, Kubota'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.


Kubota's Gross Margin % Distribution in the Farm & Heavy Construction Machinery Industry

For the Farm & Heavy Construction Machinery industry and Industrials sector, Kubota's Gross Margin % distribution charts can be found below:

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



Kubota Gross Margin % Calculation

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

Kubota's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )=Gross Profit (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=876469 / 3020711
=(Revenue - Cost of Goods Sold) / Revenue
=(3020711 - 2144242) / 3020711
=29.02 %

Kubota'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 )
=226601 / 762480
=(Revenue - Cost of Goods Sold) / Revenue
=(762480 - 535879) / 762480
=29.72 %

* 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.


Kubota  (TSE:6326) 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

Kubota had a gross margin of 29.72% 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.


Kubota Gross Margin % Related Terms

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


Kubota (TSE:6326) Business Description

Traded in Other Exchanges
Address
2-47, Shikitsuhigashi 1-Chome, Naniwa-ku, Osaka, JPN, 556-8601
Kubota manufactures and sells small and midsize agricultural and construction equipment as well as water treatment equipment. Its key products in the farm and industrial machinery segment include compact/utility tractors, mini excavators, compact track loaders, engines, and rice farming equipment, such as combine harvesters as well as rice transplanters. The company has produced over 5.4 million units of tractors worldwide and over 30 million units of engines. Its water and environment segment provides mainly pipe system products like ductile iron pipes and valves, water/waste treatment plants, pumps, as well as operation and maintenance services, including public-private partnership projects. The company is based in Osaka, Japan, and was founded in 1890.

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