Gross Margin % is calculated as gross profit divided by its revenue. Asahi Kasei's Gross Profit for the
three
months ended in Dec. 2023 was $1,479 Mil. Asahi Kasei's Revenue for the
three
months ended in Dec. 2023 was $4,988 Mil. Therefore, Asahi Kasei's Gross Margin % for the quarter that ended in Dec. 2023 was 29.66%.
Warning Sign:
Asahi Kasei Corp gross margin has been in long-term decline. The average rate of decline per year is -1.6%.
The historical rank and industry rank for Asahi Kasei's Gross Margin % or its related term are showing as below:
AHKSY'
s Gross Margin % Range Over the Past 10 Years
Min: 26.98 Med: 31.22 Max: 32.32
Current: 28.3
During the past 13 years, the highestGross Margin % of Asahi Kasei was 32.32%. The lowest was 26.98%. And the median was 31.22%.
AHKSY's Gross Margin % is ranked better than 65.21% of 1509
companies
in the Chemicals industry
Industry Median: 22.31
vs AHKSY: 28.30
Asahi Kasei had a gross margin of 29.66% for the quarter that ended in Dec. 2023 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Asahi Kasei was -1.60% per year.
Asahi Kasei Gross Margin % Historical Data
The historical data trend for Asahi Kasei'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 Asahi Kasei's Gross Margin %
For the Chemicals subindustry, Asahi Kasei'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.
Asahi Kasei's Gross Margin % Distribution in the Chemicals Industry
For the Chemicals industry and Basic Materials sector, Asahi Kasei's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Asahi Kasei'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.
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
Asahi Kasei had a gross margin of 29.66% 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.
Asahi Kasei Gross Margin % Related Terms
Thank you for viewing the detailed overview of Asahi Kasei's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Asahi Kasei Corp is a holding company that, through its subsidiaries, sells a variety of products and services. The firm is organized into four segments based on product or service. The chemicals and fibers segment, which generates the most revenue of any segment, sells ammonia-based products including plastic compounds and cellulose fiber. The homes and construction segment builds residential houses and sells thermal insulation. The electronics segment sells components for mobile phones including electronic compasses and lithium-ion battery separators. The healthcare segment sells medical devices including blood purification, blood transfusion, and bioprocess products. The majority of revenue comes from Japan.
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