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Runsystem Co (TSE:3326) Gross Margin % : 17.97% (As of Dec. 2023)


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What is Runsystem Co Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Runsystem Co's Gross Profit for the three months ended in Dec. 2023 was 円225 Mil. Runsystem Co's Revenue for the three months ended in Dec. 2023 was 円1,249 Mil. Therefore, Runsystem Co's Gross Margin % for the quarter that ended in Dec. 2023 was 17.97%.

Warning Sign:

Runsystem Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -18.8%.


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

TSE:3326' s Gross Margin % Range Over the Past 10 Years
Min: 3.75   Med: 15.27   Max: 17.96
Current: 13.01


During the past 13 years, the highest Gross Margin % of Runsystem Co was 17.96%. The lowest was 3.75%. And the median was 15.27%.

TSE:3326's Gross Margin % is ranked worse than
92.88% of 772 companies
in the Travel & Leisure industry
Industry Median: 43.215 vs TSE:3326: 13.01

Runsystem Co had a gross margin of 17.97% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Runsystem Co was -18.80% per year.


Runsystem Co Gross Margin % Historical Data

The historical data trend for Runsystem 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.

Runsystem Co Gross Margin % Chart

Runsystem Co Annual Data
Trend Jun12 Jun13 Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 13.86 13.54 15.48 12.99 3.75

Runsystem Co Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 8.82 16.08 8.63 14.51 17.97

Competitive Comparison of Runsystem Co's Gross Margin %

For the Leisure subindustry, Runsystem 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.


Runsystem Co's Gross Margin % Distribution in the Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, Runsystem Co's Gross Margin % distribution charts can be found below:

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



Runsystem Co Gross Margin % Calculation

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

Runsystem Co's Gross Margin for the fiscal year that ended in Jun. 2021 is calculated as

Gross Margin % (A: Jun. 2021 )=Gross Profit (A: Jun. 2021 ) / Revenue (A: Jun. 2021 )
=184.5 / 4918.16
=(Revenue - Cost of Goods Sold) / Revenue
=(4918.16 - 4733.693) / 4918.16
=3.75 %

Runsystem 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 )
=224.6 / 1249.462
=(Revenue - Cost of Goods Sold) / Revenue
=(1249.462 - 1024.902) / 1249.462
=17.97 %

* 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.


Runsystem Co  (TSE:3326) 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

Runsystem Co had a gross margin of 17.97% 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.


Runsystem Co Gross Margin % Related Terms

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Runsystem Co (TSE:3326) Business Description

Traded in Other Exchanges
N/A
Address
3F, Aoyagi Ikebukuro, Ikebukuro 2-chome, Toshima-ku, Tokyo, JPN, 171-0014
Runsystem Co., Ltd is engaged in store management business, creation of space for self-fun, and real estate business in Japan. The company also offers own space game applications.

Runsystem Co (TSE:3326) Headlines

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