The historical rank and industry rank for Tokai Soft Co's Gross Margin % or its related term are showing as below:
TSE:4430'
s Gross Margin % Range Over the Past 10 Years
Min: 18.32 Med: 22.17 Max: 25.24
Current: 24.85
During the past 7 years, the highestGross Margin % of Tokai Soft Co was 25.24%. The lowest was 18.32%. And the median was 22.17%.
TSE:4430's Gross Margin % is ranked worse than 73.5% of 2638
companies
in the Software industry
Industry Median: 41.845
vs TSE:4430: 24.85
Tokai Soft Co had a gross margin of 26.36% for the quarter that ended in Feb. 2024 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Tokai Soft Co was 3.80% per year.
Tokai Soft Co Gross Margin % Historical Data
The historical data trend for Tokai Soft Co'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 Tokai Soft Co's Gross Margin %
For the Software - Infrastructure subindustry, Tokai Soft Co'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.
Tokai Soft Co's Gross Margin % Distribution in the Software Industry
For the Software industry and Technology sector, Tokai Soft Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Tokai Soft Co'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.
Tokai Soft Co (TSE:4430) 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
Tokai Soft Co had a gross margin of 26.36% for the quarter that ended in Feb. 2024 => 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.
Tokai Soft Co Gross Margin % Related Terms
Thank you for viewing the detailed overview of Tokai Soft Co's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Tokai Soft Co Ltd provides software solutions. The company is engaged in a wide range of businesses as an engineering company that combines technologies for total system construction, network and solution solutions, and support technologies that provide stable operation.
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