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Towa (TOWCF) Gross Margin % : 40.27% (As of Sep. 2024)


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What is Towa Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Towa's Gross Profit for the three months ended in Sep. 2024 was $39.8 Mil. Towa's Revenue for the three months ended in Sep. 2024 was $99.0 Mil. Therefore, Towa's Gross Margin % for the quarter that ended in Sep. 2024 was 40.27%.


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

TOWCF' s Gross Margin % Range Over the Past 10 Years
Min: 24.71   Med: 32.14   Max: 38.52
Current: 38.52


During the past 13 years, the highest Gross Margin % of Towa was 38.52%. The lowest was 24.71%. And the median was 32.14%.

TOWCF's Gross Margin % is ranked better than
69.18% of 983 companies
in the Semiconductors industry
Industry Median: 28.41 vs TOWCF: 38.52

Towa had a gross margin of 40.27% for the quarter that ended in Sep. 2024 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Towa was 8.60% per year.


Towa Gross Margin % Historical Data

The historical data trend for Towa'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.

Towa Gross Margin % Chart

Towa 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 26.08 32.37 36.82 34.95 36.06

Towa 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 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 31.89 37.94 39.30 36.02 40.27

Competitive Comparison of Towa's Gross Margin %

For the Semiconductor Equipment & Materials subindustry, Towa'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.


Towa's Gross Margin % Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, Towa's Gross Margin % distribution charts can be found below:

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



Towa Gross Margin % Calculation

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

Towa'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 )
=121.5 / 336.886
=(Revenue - Cost of Goods Sold) / Revenue
=(336.886 - 215.418) / 336.886
=36.06 %

Towa'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 )
=39.8 / 98.953
=(Revenue - Cost of Goods Sold) / Revenue
=(98.953 - 59.104) / 98.953
=40.27 %

* 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.


Towa  (OTCPK:TOWCF) 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

Towa had a gross margin of 40.27% 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.


Towa Gross Margin % Related Terms

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Towa Business Description

Comparable Companies
Traded in Other Exchanges
Address
5 Kamichoshi-cho, Kamitoba, Minami-ku, Kyoto, JPN, 601-8105
Towa Corp develops, manufactures and sells resin encapsulation systems for semiconductors and singulation systems. In addition, it also manufactures and sells precision molds for manufacturing semiconductors and plastic molded products. Its product portfolio is divided into two technologies molding including light-emitting diode, semiconductor, and sensors/module products and Singulation including semiconductor, and light-emitting diode-other applications. The company's segments include semiconductor equipment and fine plastic mold. The majority of the company revenue is derived from the sale of semiconductor equipment.

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