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Business Engineering (TSE:4828) Gross Margin % : 40.25% (As of Dec. 2023)


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What is Business Engineering Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Business Engineering's Gross Profit for the three months ended in Dec. 2023 was 円1,924 Mil. Business Engineering's Revenue for the three months ended in Dec. 2023 was 円4,781 Mil. Therefore, Business Engineering's Gross Margin % for the quarter that ended in Dec. 2023 was 40.25%.


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

TSE:4828' s Gross Margin % Range Over the Past 10 Years
Min: 28.62   Med: 30.53   Max: 40.29
Current: 40.29


During the past 13 years, the highest Gross Margin % of Business Engineering was 40.29%. The lowest was 28.62%. And the median was 30.53%.

TSE:4828's Gross Margin % is ranked worse than
51.96% of 2633 companies
in the Software industry
Industry Median: 41.79 vs TSE:4828: 40.29

Business Engineering had a gross margin of 40.25% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Business Engineering was 6.30% per year.


Business Engineering Gross Margin % Historical Data

The historical data trend for Business Engineering'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.

Business Engineering Gross Margin % Chart

Business Engineering Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 29.43 30.69 33.12 37.80 40.28

Business Engineering Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 37.44 42.30 40.56 40.25 38.10

Competitive Comparison of Business Engineering's Gross Margin %

For the Software - Application subindustry, Business Engineering'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.


Business Engineering's Gross Margin % Distribution in the Software Industry

For the Software industry and Technology sector, Business Engineering's Gross Margin % distribution charts can be found below:

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



Business Engineering Gross Margin % Calculation

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

Business Engineering's Gross Margin for the fiscal year that ended in Mar. 2024 is calculated as

Gross Margin % (A: Mar. 2024 )=Gross Profit (A: Mar. 2024 ) / Revenue (A: Mar. 2024 )
=7852.8 / 19493.075
=(Revenue - Cost of Goods Sold) / Revenue
=(19493.075 - 11640.305) / 19493.075
=40.28 %

Business Engineering'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 )
=1924.4 / 4781.153
=(Revenue - Cost of Goods Sold) / Revenue
=(4781.153 - 2856.772) / 4781.153
=40.25 %

* 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.


Business Engineering  (TSE:4828) 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

Business Engineering had a gross margin of 40.25% for the quarter that ended in Dec. 2023 => Durable competitive advantage


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.


Business Engineering Gross Margin % Related Terms

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Business Engineering (TSE:4828) Business Description

Traded in Other Exchanges
N/A
Address
1-8-1 Otemachi, Chiyoda-ku, KDDI Otemachi Building, Tokyo, JPN, 100-0004
Business Engineering Corp is a Japan-based company engaged in providing enterprise software solutions. The solutions offered by the company include Wide line up solutions, Oracle, Mcframe, Mcframe cloud, Global MES, SAP, Mcframe motion VR learning.

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