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Soliton Systems KK (TSE:3040) Gross Margin % : 44.81% (As of Mar. 2024)


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What is Soliton Systems KK Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Soliton Systems KK's Gross Profit for the three months ended in Mar. 2024 was 円2,050 Mil. Soliton Systems KK's Revenue for the three months ended in Mar. 2024 was 円4,575 Mil. Therefore, Soliton Systems KK's Gross Margin % for the quarter that ended in Mar. 2024 was 44.81%.


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

TSE:3040' s Gross Margin % Range Over the Past 10 Years
Min: 38.62   Med: 42.74   Max: 45.85
Current: 45.17


During the past 13 years, the highest Gross Margin % of Soliton Systems KK was 45.85%. The lowest was 38.62%. And the median was 42.74%.

TSE:3040's Gross Margin % is ranked better than
53.69% of 2632 companies
in the Software industry
Industry Median: 41.8 vs TSE:3040: 45.17

Soliton Systems KK had a gross margin of 44.81% for the quarter that ended in Mar. 2024 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Soliton Systems KK was -0.90% per year.


Soliton Systems KK Gross Margin % Historical Data

The historical data trend for Soliton Systems KK'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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Soliton Systems KK Gross Margin % Chart

Soliton Systems KK Annual Data
Trend Mar14 Mar15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 42.75 45.85 44.99 38.62 44.92

Soliton Systems KK 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 43.81 43.10 44.82 47.37 44.81

Competitive Comparison of Soliton Systems KK's Gross Margin %

For the Software - Infrastructure subindustry, Soliton Systems KK'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.


Soliton Systems KK's Gross Margin % Distribution in the Software Industry

For the Software industry and Technology sector, Soliton Systems KK's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Soliton Systems KK's Gross Margin % falls into.



Soliton Systems KK Gross Margin % Calculation

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

Soliton Systems KK'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 )
=8561 / 19058
=(Revenue - Cost of Goods Sold) / Revenue
=(19058 - 10497) / 19058
=44.92 %

Soliton Systems KK's Gross Margin for the quarter that ended in Mar. 2024 is calculated as


Gross Margin % (Q: Mar. 2024 )=Gross Profit (Q: Mar. 2024 ) / Revenue (Q: Mar. 2024 )
=2050 / 4575
=(Revenue - Cost of Goods Sold) / Revenue
=(4575 - 2525) / 4575
=44.81 %

* 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.


Soliton Systems KK  (TSE:3040) 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

Soliton Systems KK had a gross margin of 44.81% for the quarter that ended in Mar. 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.


Soliton Systems KK Gross Margin % Related Terms

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Soliton Systems KK (TSE:3040) Business Description

Traded in Other Exchanges
N/A
Address
2-4-3 Shinjuku, Shinjuku-ku, Tokyo, JPN
Soliton Systems K.K is engaged in IT security business, Video communication business, and Eco-device business. The IT security business involves the development and sale of products such as information leakage countermeasure, login authentication by electronic certificate, big data recording, cybersecurity measures, enterprise cloud service, and enterprise network integration. The Video communication business involves development and sales of "Smart-telecaster", a high-quality real-time image transmission system using mobile lines and Eco-device business engages in the development and sales of analog / digital mixed semiconductor devices and embedded systems.

Soliton Systems KK (TSE:3040) Headlines

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