Switch to:
NTT DoCoMo Inc (NYSE:DCM)
Gross Margin
54.94% (As of Sep. 2014)

Gross Margin is calculated as gross profit divided by its revenue. NTT DoCoMo Inc's gross profit for the three months ended in Sep. 2014 was $5,614 Mil. NTT DoCoMo Inc's revenue for the three months ended in Sep. 2014 was $10,218 Mil. Therefore, NTT DoCoMo Inc's Gross Margin for the quarter that ended in Sep. 2014 was 54.94%.

Warning Sign:

NTT DoCoMo Inc gross margin has been in long term decline. The average rate of decline per year is -1.1%.

DCM' s 10-Year Gross Margin Range
Min: 58.37   Max: 68.81
Current: 56.27

58.37
68.81

During the past 13 years, the highest Gross Margin of NTT DoCoMo Inc was 68.81%. The lowest was 58.37%. And the median was 62.52%.

DCM's Gross Marginis ranked lower than
100% of the Companies
in the Global Telecom Services industry.

( Industry Median: vs. DCM: 56.27 )

NTT DoCoMo Inc had a gross margin of 54.94% for the quarter that ended in Sep. 2014 => Durable competitive advantage

The 3-Year average Growth Rate of Gross Margin for NTT DoCoMo Inc was -1.10% per year.


Definition

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

NTT DoCoMo Inc's Gross Margin for the fiscal year that ended in Mar. 2014 is calculated as

Gross Margin (A: Mar. 2014 )=Gross Profit (A: Mar. 2014 ) / Revenue (A: Mar. 2014 )
=25565.5 / 43591.9777213
=(Revenue - Cost of Goods Sold) / Revenue
=(43591.9777213 - 18026.4608169) / 43591.9777213
=58.65 %

NTT DoCoMo Inc's Gross Margin for the quarter that ended in Sep. 2014 is calculated as

Gross Margin (Q: Sep. 2014 )=Gross Profit (Q: Sep. 2014 ) / Revenue (Q: Sep. 2014 )
=5613.7 / 10217.98322
=(Revenue - Cost of Goods Sold) / Revenue
=(10217.98322 - 4604.28929018) / 10217.98322
=54.94 %

* All numbers are in millions except for per share data and ratio. All numbers are in their own 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.


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

NTT DoCoMo Inc had a gross margin of 54.94% for the quarter that ended in Sep. 2014 => 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.


Related Terms

Operating Margin, Cost of Goods Sold, Gross Profit, Revenue


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

NTT DoCoMo Inc Annual Data

Mar05Mar06Mar07Mar08Mar09Mar10Mar11Mar12Mar13Mar14
Gross Margin 61.5560.9858.5358.3761.7762.6863.0962.5260.3858.65

NTT DoCoMo Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
Gross Margin 63.6659.4559.3659.2361.5461.8354.7556.7058.8254.94
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK