SOBKY (SoftBank) Gross Margin % : 49.76% (As of Sep. 2024)

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What is SoftBank Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. SoftBank's Gross Profit for the three months ended in Sep. 2024 was $5,626 Mil. SoftBank's Revenue for the three months ended in Sep. 2024 was $11,307 Mil. Therefore, SoftBank's Gross Margin % for the quarter that ended in Sep. 2024 was 49.76%.

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

SOBKY' s Gross Margin % Range Over the Past 10 Years
Min: 43.04 Med: 47.2 Max: 49.23
Current: 48.3

During the past 10 years, the highest Gross Margin % of SoftBank was 49.23%. The lowest was 43.04%. And the median was 47.20%.

SOBKY's Gross Margin % is ranked worse than
52.44% of 349 companies
in the Telecommunication Services industry
Industry Median: 49.45 vs SOBKY: 48.30

SoftBank had a gross margin of 49.76% for the quarter that ended in Sep. 2024 => Durable competitive advantage

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

SoftBank Gross Margin % Historical Data

The historical data trend for SoftBank'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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SoftBank Gross Margin % Chart

SoftBank Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Gross Margin %

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47.82

48.10

49.23

45.97

48.21

SoftBank Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
Gross Margin %	Get a 7-Day Free Trial															49.95	47.64	45.43	50.36	49.76

Competitive Comparison of SoftBank's Gross Margin %

For the Telecom Services subindustry, SoftBank'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.

SoftBank's Gross Margin % Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, SoftBank's Gross Margin % distribution charts can be found below:

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

SoftBank Gross Margin % Calculation

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

SoftBank'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 )
	=	19579.3	/	40609.123
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(40609.123 - 21029.785)	/	40609.123
	=	48.21 %

SoftBank's Gross Margin for the quarter that ended in Sep. 2024 is calculated as

Gross Margin % (Q: Sep. 2024 )	=	Gross Profit (Q: Sep. 2024 )	/	Revenue (Q: Sep. 2024 )
	=	5626.1	/	11306.833
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(11306.833 - 5680.75)	/	11306.833
	=	49.76 %

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.

SoftBank (OTCPK:SOBKY) 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

SoftBank had a gross margin of 49.76% for the quarter that ended in Sep. 2024 => 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.

SoftBank Gross Margin % Related Terms

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SoftBank Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Telecommunication Services » SoftBank Corp (OTCPK:SOBKY) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

SFBQF:USA 9434:Japan 3AG1:Germany

Address

1-7-1 Kaigan, Minato-ku, Tokyo, JPN, 105-7529

Website

https://www.softbank.jp

SoftBank is an established, telecommunications services provider in Japan owning a mobile network with around 50 million mobile customers and 24% market share. It also provides some fixed line services, which are mostly resold so are low margin. The company also owns 32.4% of LY Corp, and SoftBank and LY Corp each own 32% of PayPay so SoftBank consolidates PayPay. SoftBank Group sold 33.5% of the SoftBank Corp in an IPO in 2018 and sold down further to a 42% holding in 2020.