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KLab (TSE:3656) Gross Margin % : -6.03% (As of Mar. 2024)


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What is KLab Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. KLab's Gross Profit for the three months ended in Mar. 2024 was 円-95 Mil. KLab's Revenue for the three months ended in Mar. 2024 was 円1,582 Mil. Therefore, KLab's Gross Margin % for the quarter that ended in Mar. 2024 was -6.03%.

Warning Sign:

KLab Inc gross margin has been in long-term decline. The average rate of decline per year is -12.5%.


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

TSE:3656' s Gross Margin % Range Over the Past 10 Years
Min: 11.38   Med: 24.55   Max: 35.72
Current: 12.84


During the past 13 years, the highest Gross Margin % of KLab was 35.72%. The lowest was 11.38%. And the median was 24.55%.

TSE:3656's Gross Margin % is ranked worse than
94.04% of 520 companies
in the Interactive Media industry
Industry Median: 60.98 vs TSE:3656: 12.84

KLab had a gross margin of -6.03% for the quarter that ended in Mar. 2024 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for KLab was -12.50% per year.


KLab Gross Margin % Historical Data

The historical data trend for KLab'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.

KLab Gross Margin % Chart

KLab Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 22.60 20.59 11.38 17.91 16.37

KLab 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 15.58 15.76 19.16 14.44 -6.03

Competitive Comparison of KLab's Gross Margin %

For the Electronic Gaming & Multimedia subindustry, KLab'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.


KLab's Gross Margin % Distribution in the Interactive Media Industry

For the Interactive Media industry and Communication Services sector, KLab's Gross Margin % distribution charts can be found below:

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



KLab Gross Margin % Calculation

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

KLab'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 )
=1754 / 10717.075
=(Revenue - Cost of Goods Sold) / Revenue
=(10717.075 - 8963.067) / 10717.075
=16.37 %

KLab'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 )
=-95.4 / 1581.792
=(Revenue - Cost of Goods Sold) / Revenue
=(1581.792 - 1677.199) / 1581.792
=-6.03 %

* 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.


KLab  (TSE:3656) 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

KLab had a gross margin of -6.03% for the quarter that ended in Mar. 2024 => 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.


KLab Gross Margin % Related Terms

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KLab (TSE:3656) Business Description

Traded in Other Exchanges
N/A
Address
Roppongi Hills Mori Tower, 6-10-1 Roppongi, Minato-ku, Tokyo, JPN, 106-6122
KLab Inc is the Japan-based software company. The principal activities of the company are planning, developing, and operating online mobile games. The company's business is broadly divided into two areas - game business and other business. The game business is focused on designing and developing online mobile games. The other business is involved in designing, developing, and providing smartphone-related applications, services, and server infrastructures. The company has an operational presence across China, Singapore, Japan and the United States.

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