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Feed One Co (TSE:2060) Gross Margin % : 10.01% (As of Dec. 2023)


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What is Feed One Co Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Feed One Co's Gross Profit for the three months ended in Dec. 2023 was 円8,177 Mil. Feed One Co's Revenue for the three months ended in Dec. 2023 was 円81,724 Mil. Therefore, Feed One Co's Gross Margin % for the quarter that ended in Dec. 2023 was 10.01%.

Warning Sign:

Feed One Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -5.1%.


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

TSE:2060' s Gross Margin % Range Over the Past 10 Years
Min: 7.37   Med: 10.48   Max: 12.02
Current: 9.79


During the past 10 years, the highest Gross Margin % of Feed One Co was 12.02%. The lowest was 7.37%. And the median was 10.48%.

TSE:2060's Gross Margin % is ranked worse than
84.29% of 1814 companies
in the Consumer Packaged Goods industry
Industry Median: 25.285 vs TSE:2060: 9.79

Feed One Co had a gross margin of 10.01% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Feed One Co was -5.10% per year.


Feed One Co Gross Margin % Historical Data

The historical data trend for Feed One 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.

Feed One Co Gross Margin % Chart

Feed One 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 11.00 10.25 9.34 7.37 9.79

Feed One 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 7.50 8.37 9.30 10.01 11.55

Competitive Comparison of Feed One Co's Gross Margin %

For the Packaged Foods subindustry, Feed One 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.


Feed One Co's Gross Margin % Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Feed One Co's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Feed One Co's Gross Margin % falls into.



Feed One Co Gross Margin % Calculation

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

Feed One 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 )
=30721 / 313875
=(Revenue - Cost of Goods Sold) / Revenue
=(313875 - 283154) / 313875
=9.79 %

Feed One 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 )
=8177 / 81724
=(Revenue - Cost of Goods Sold) / Revenue
=(81724 - 73547) / 81724
=10.01 %

* 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.


Feed One Co  (TSE:2060) 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

Feed One Co had a gross margin of 10.01% 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.


Feed One Co Gross Margin % Related Terms

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Feed One Co (TSE:2060) Business Description

Traded in Other Exchanges
N/A
Address
2-23-2, Tsuruyacho, Kanagawa-ku, Kanagawa, Yokohama-shi, JPN, 221-0835
Feed One Co Ltd is a Japanese company engaged in the manufacture and sale of mixed feed, animal and fishery feeds. It also provides other ancillary services such as farm-management consulting, management of veterinary examination and treatment facilities.

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