Dentsu Group (Dentsu Group) Gross Margin % : 89.69% (As of Dec. 2023)

View and export this data going back to 2012. Start your Free Trial

What is Dentsu Group Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Dentsu Group's Gross Profit for the three months ended in Dec. 2023 was $2,303 Mil. Dentsu Group's Revenue for the three months ended in Dec. 2023 was $2,568 Mil. Therefore, Dentsu Group's Gross Margin % for the quarter that ended in Dec. 2023 was 89.69%.

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

DNTUF' s Gross Margin % Range Over the Past 10 Years
Min: 87.75 Med: 90.77 Max: 94.49
Current: 87.75

During the past 13 years, the highest Gross Margin % of Dentsu Group was 94.49%. The lowest was 87.75%. And the median was 90.77%.

DNTUF's Gross Margin % is ranked better than
92.42% of 963 companies
in the Media - Diversified industry
Industry Median: 38.52 vs DNTUF: 87.75

Dentsu Group had a gross margin of 89.69% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Dentsu Group was -0.60% per year.

Dentsu Group Gross Margin % Historical Data

The historical data trend for Dentsu Group'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.

Dentsu Group Gross Margin % Chart

Dentsu Group Annual Data

Trend

Mar14

Mar15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

Get a 7-Day Free Trial

89.65

88.91

89.96

89.82

87.76

Dentsu Group Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Gross Margin %	Get a 7-Day Free Trial															89.97	88.34	87.96	84.86	89.69

Competitive Comparison of Dentsu Group's Gross Margin %

For the Advertising Agencies subindustry, Dentsu Group'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.

Dentsu Group's Gross Margin % Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Dentsu Group's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Dentsu Group's Gross Margin % falls into.

Dentsu Group Gross Margin % Calculation

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

Dentsu Group's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )	=	Gross Profit (A: Dec. 2023 )	/	Revenue (A: Dec. 2023 )
	=	7951.2	/	9060.553
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(9060.553 - 1109.4)	/	9060.553
	=	87.76 %

Dentsu Group'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 )
	=	2302.9	/	2567.656
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(2567.656 - 264.756)	/	2567.656
	=	89.69 %

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.

Dentsu Group (OTCPK:DNTUF) 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

Dentsu Group had a gross margin of 89.69% 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.

Dentsu Group Gross Margin % Related Terms

Thank you for viewing the detailed overview of Dentsu Group's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.

Dentsu Group (Dentsu Group) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » Dentsu Group Inc (OTCPK:DNTUF) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

DNTUY:USA 4324:Japan DEN:Germany

Address

1-8-1 Higashi Shinbashi, Minato-ku, Tokyo, JPN, 105-7001

Website

https://www.dentsu.com

Dentsu Group Inc is a Japanese international advertising and public relations company that provides communication-related solutions and services such as management and business consulting. Dentsu is one of the world's largest advertising agencies. The company operates through its nine global network brands--Carat, Dentsu, Dentsu media, iProspect, Isobar, mcgarrybowen, MKTG, Posterscope and Vizeum--as well as through its specialist/multi-market brands. It is also active in the production and marketing of sports and entertainment content on a global scale. The company earns a majority of its revenue in Japan, followed by Europe and the Americas, while operating in over 100 countries around the world.