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Nippon Light Metal Holdings Co (FRA:N9L) Gross Margin % : 18.16% (As of Dec. 2023)


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What is Nippon Light Metal Holdings Co Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Nippon Light Metal Holdings Co's Gross Profit for the three months ended in Dec. 2023 was €159 Mil. Nippon Light Metal Holdings Co's Revenue for the three months ended in Dec. 2023 was €874 Mil. Therefore, Nippon Light Metal Holdings Co's Gross Margin % for the quarter that ended in Dec. 2023 was 18.16%.

Warning Sign:

Nippon Light Metal Holdings Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -4.7%.


The historical rank and industry rank for Nippon Light Metal Holdings Co's Gross Margin % or its related term are showing as below:

FRA:N9L' s Gross Margin % Range Over the Past 10 Years
Min: 14.88   Med: 19.33   Max: 20.82
Current: 16.92


During the past 13 years, the highest Gross Margin % of Nippon Light Metal Holdings Co was 20.82%. The lowest was 14.88%. And the median was 19.33%.

FRA:N9L's Gross Margin % is ranked worse than
53.53% of 708 companies
in the Metals & Mining industry
Industry Median: 19.17 vs FRA:N9L: 16.92

Nippon Light Metal Holdings Co had a gross margin of 18.16% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Nippon Light Metal Holdings Co was -4.70% per year.


Nippon Light Metal Holdings Co Gross Margin % Historical Data

The historical data trend for Nippon Light Metal Holdings 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.

* Premium members only.

Nippon Light Metal Holdings Co Gross Margin % Chart

Nippon Light Metal Holdings Co 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 20.09 20.82 18.77 14.88 16.92

Nippon Light Metal Holdings Co 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 14.95 15.47 16.75 18.16 17.12

Competitive Comparison of Nippon Light Metal Holdings Co's Gross Margin %

For the Aluminum subindustry, Nippon Light Metal Holdings 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.


Nippon Light Metal Holdings Co's Gross Margin % Distribution in the Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, Nippon Light Metal Holdings Co's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Nippon Light Metal Holdings Co's Gross Margin % falls into.



Nippon Light Metal Holdings Co Gross Margin % Calculation

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

Nippon Light Metal Holdings Co'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 )
=544.1 / 3216.008
=(Revenue - Cost of Goods Sold) / Revenue
=(3216.008 - 2671.888) / 3216.008
=16.92 %

Nippon Light Metal Holdings Co'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 )
=158.8 / 874.198
=(Revenue - Cost of Goods Sold) / Revenue
=(874.198 - 715.422) / 874.198
=18.16 %

* 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.


Nippon Light Metal Holdings Co  (FRA:N9L) 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

Nippon Light Metal Holdings Co had a gross margin of 18.16% for the quarter that ended in Dec. 2023 => No sustainable 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.


Nippon Light Metal Holdings Co Gross Margin % Related Terms

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Nippon Light Metal Holdings Co (FRA:N9L) Business Description

Traded in Other Exchanges
Address
Tennozu Yusen Building, 2-2-20 Higashi-Shinagawa, Shinagawa-ku, Tokyo, JPN, 140-8628
Nippon Light Metal Holdings Co Ltd manufactures and sells alumina, aluminum, and fabricated products to customers worldwide. The company produces alloys, spark plug components, car suspension parts and aluminum sheets for the automotive industry and rolling stocks and truck cargo gates for the transportation industry. Nippon also manufactures other alloys, aluminum and alumina products for multiple end customers including the electrical, food, and construction industries. The company has operations throughout Asia as well as the United States and France.

Nippon Light Metal Holdings Co (FRA:N9L) Headlines

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