The historical rank and industry rank for Daiwa Tsushin Co's Gross Margin % or its related term are showing as below:
TSE:7116'
s Gross Margin % Range Over the Past 10 Years
Min: 30.95 Med: 36.5 Max: 50.03
Current: 30.95
During the past 3 years, the highestGross Margin % of Daiwa Tsushin Co was 50.03%. The lowest was 30.95%. And the median was 36.50%.
TSE:7116's Gross Margin % is ranked worse than 54.82% of 985
companies
in the Business Services industry
Industry Median: 34.69
vs TSE:7116: 30.95
Daiwa Tsushin Co had a gross margin of 29.97% for the quarter that ended in Dec. 2023 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Daiwa Tsushin Co was 0.00% per year.
Daiwa Tsushin Co Gross Margin % Historical Data
The historical data trend for Daiwa Tsushin 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 Daiwa Tsushin Co's Gross Margin %
For the Security & Protection Services subindustry, Daiwa Tsushin 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.
Daiwa Tsushin Co's Gross Margin % Distribution in the Business Services Industry
For the Business Services industry and Industrials sector, Daiwa Tsushin Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Daiwa Tsushin 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.
Daiwa Tsushin Co (TSE:7116) 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
Daiwa Tsushin Co had a gross margin of 29.97% 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.
Daiwa Tsushin Co Gross Margin % Related Terms
Thank you for viewing the detailed overview of Daiwa Tsushin Co's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Daiwa Tsushin Co Ltd operates in the security business. It is engaged in the planning and sales of security cameras, provision of solutions using face recognition technology and mobile business.
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