Takara Holdings Inc gross margin has been in long-term decline. The average rate of decline per year is -2%.
The historical rank and industry rank for Takara Holdings's Gross Margin % or its related term are showing as below:
FRA:TAX'
s Gross Margin % Range Over the Past 10 Years
Min: 32.73 Med: 38.89 Max: 41.51
Current: 32.73
During the past 13 years, the highestGross Margin % of Takara Holdings was 41.51%. The lowest was 32.73%. And the median was 38.89%.
FRA:TAX's Gross Margin % is ranked worse than 69.52% of 210
companies
in the Beverages - Alcoholic industry
Industry Median: 39.73
vs FRA:TAX: 32.73
Takara Holdings had a gross margin of 31.99% for the quarter that ended in Dec. 2023 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Takara Holdings was -2.00% per year.
Takara Holdings Gross Margin % Historical Data
The historical data trend for Takara Holdings'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 Takara Holdings's Gross Margin %
For the Beverages - Brewers subindustry, Takara Holdings'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.
Takara Holdings's Gross Margin % Distribution in the Beverages - Alcoholic Industry
For the Beverages - Alcoholic industry and Consumer Defensive sector, Takara Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Takara Holdings'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
Takara Holdings had a gross margin of 31.99% 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.
Takara Holdings Gross Margin % Related Terms
Thank you for viewing the detailed overview of Takara Holdings's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Takara Holdings Inc operates three businesses: Alcoholic Beverages and Seasonings, Biomedical, and Health Foods. Roughly 80% of the company's sales come from Japan. The Alcoholic Beverages and Seasonings business, which manufactures shochu, sake, light-alcohol refreshers, seasonings, and raw alcohol, generates the vast majority of the company's revenue. Most remaining revenue comes from the biomedical business, which primarily manufactures and sells reagents and other instruments for biomedical researchers but also provides contract research services and develops health food ingredients. Takara's foods business develops and sells health food products that are largely based on seaweed, algae, and herbs.
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