Hikari Holdings Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -3.7%.
The historical rank and industry rank for Hikari Holdings Co's Gross Margin % or its related term are showing as below:
TSE:1445'
s Gross Margin % Range Over the Past 10 Years
Min: 21.37 Med: 27.14 Max: 35.82
Current: 21.97
During the past 7 years, the highestGross Margin % of Hikari Holdings Co was 35.82%. The lowest was 21.37%. And the median was 27.14%.
TSE:1445's Gross Margin % is not ranked
in the Conglomerates industry.
Industry Median: 24.765
vs TSE:1445: 21.97
Hikari Holdings Co had a gross margin of 23.16% for the quarter that ended in Feb. 2024 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Hikari Holdings Co was -3.70% per year.
Hikari Holdings Co Gross Margin % Historical Data
The historical data trend for Hikari 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.
Competitive Comparison of Hikari Holdings Co's Gross Margin %
For the Conglomerates subindustry, Hikari 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.
Hikari Holdings Co's Gross Margin % Distribution in the Conglomerates Industry
For the Conglomerates industry and Industrials sector, Hikari Holdings Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Hikari Holdings Co's Gross Margin % falls into.
* 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.
Hikari Holdings Co (TSE:1445) 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
Hikari Holdings Co had a gross margin of 23.16% for the quarter that ended in Feb. 2024 => 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.
Hikari Holdings Co Gross Margin % Related Terms
Thank you for viewing the detailed overview of Hikari Holdings Co's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Hikari Holdings Co (TSE:1445) Business Description
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
TSE:1445 has been successfully added to your 