MEDIROM Healthcare Technologies (MEDIROM Healthcare Technologies) Gross Margin % : 24.82% (As of Dec. 2023)

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What is MEDIROM Healthcare Technologies Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. MEDIROM Healthcare Technologies's Gross Profit for the six months ended in Dec. 2023 was $6.18 Mil. MEDIROM Healthcare Technologies's Revenue for the six months ended in Dec. 2023 was $24.90 Mil. Therefore, MEDIROM Healthcare Technologies's Gross Margin % for the quarter that ended in Dec. 2023 was 24.82%.

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

MRM' s Gross Margin % Range Over the Past 10 Years
Min: 12.84 Med: 25.25 Max: 27.87
Current: 22.96

During the past 6 years, the highest Gross Margin % of MEDIROM Healthcare Technologies was 27.87%. The lowest was 12.84%. And the median was 25.25%.

MRM's Gross Margin % is ranked worse than
81.55% of 103 companies
in the Personal Services industry
Industry Median: 45.25 vs MRM: 22.96

MEDIROM Healthcare Technologies had a gross margin of 24.82% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for MEDIROM Healthcare Technologies was 0.30% per year.

MEDIROM Healthcare Technologies Gross Margin % Historical Data

The historical data trend for MEDIROM Healthcare Technologies'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.

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MEDIROM Healthcare Technologies Gross Margin % Chart

MEDIROM Healthcare Technologies Annual Data

Trend

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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24.33

12.84

26.16

27.36

22.98

MEDIROM Healthcare Technologies Semi-Annual Data
	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Gross Margin %	Get a 7-Day Free Trial						32.20	25.92	28.54	20.94	24.82

Competitive Comparison of MEDIROM Healthcare Technologies's Gross Margin %

For the Personal Services subindustry, MEDIROM Healthcare Technologies'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.

MEDIROM Healthcare Technologies's Gross Margin % Distribution in the Personal Services Industry

For the Personal Services industry and Consumer Cyclical sector, MEDIROM Healthcare Technologies's Gross Margin % distribution charts can be found below:

* The bar in red indicates where MEDIROM Healthcare Technologies's Gross Margin % falls into.

MEDIROM Healthcare Technologies Gross Margin % Calculation

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

MEDIROM Healthcare Technologies'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 )
	=	10.9	/	47.422
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(47.422 - 36.526)	/	47.422
	=	22.98 %

MEDIROM Healthcare Technologies'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 )
	=	6.2	/	24.9
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(24.9 - 18.719)	/	24.9
	=	24.82 %

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.

MEDIROM Healthcare Technologies (NAS:MRM) 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

MEDIROM Healthcare Technologies had a gross margin of 24.82% 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.

MEDIROM Healthcare Technologies Gross Margin % Related Terms

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MEDIROM Healthcare Technologies (MEDIROM Healthcare Technologies) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Personal Services » MEDIROM Healthcare Technologies Inc (NAS:MRM) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

2-3-1 Daiba, Minato-ku, 16th Floor Tradepia Odaiba, Tokyo, JPN, 135-0091

Website

https://www.medirom.co.jp

MEDIROM Healthcare Technologies Inc provides health services. The company is a franchiser and operator of healthcare salons and operates in segments namely Relaxation Salon, Digital Preventative Healthcare, and Luxury Beauty Segment. The company generates a majority of its revenue from the Relaxation Salon business segment. Geographically, the company generates a maximum share of its revenue from Japan.