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PKSHA Technology (TSE:3993) Gross Margin % : 55.43% (As of Mar. 2024)


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What is PKSHA Technology Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. PKSHA Technology's Gross Profit for the three months ended in Mar. 2024 was 円2,361 Mil. PKSHA Technology's Revenue for the three months ended in Mar. 2024 was 円4,259 Mil. Therefore, PKSHA Technology's Gross Margin % for the quarter that ended in Mar. 2024 was 55.43%.

Warning Sign:

PKSHA Technology Inc gross margin has been in long-term decline. The average rate of decline per year is -3.4%.


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

TSE:3993' s Gross Margin % Range Over the Past 10 Years
Min: 38.47   Med: 49.83   Max: 63.62
Current: 52.73


During the past 7 years, the highest Gross Margin % of PKSHA Technology was 63.62%. The lowest was 38.47%. And the median was 49.83%.

TSE:3993's Gross Margin % is ranked better than
61.33% of 2630 companies
in the Software industry
Industry Median: 41.72 vs TSE:3993: 52.73

PKSHA Technology had a gross margin of 55.43% for the quarter that ended in Mar. 2024 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for PKSHA Technology was -3.40% per year.


PKSHA Technology Gross Margin % Historical Data

The historical data trend for PKSHA Technology'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.

PKSHA Technology Gross Margin % Chart

PKSHA Technology Annual Data
Trend Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
Gross Margin %
Get a 7-Day Free Trial 53.24 38.47 41.09 49.83 49.79

PKSHA Technology 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 47.15 55.10 48.04 52.19 55.43

Competitive Comparison of PKSHA Technology's Gross Margin %

For the Software - Infrastructure subindustry, PKSHA Technology'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.


PKSHA Technology's Gross Margin % Distribution in the Software Industry

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

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



PKSHA Technology Gross Margin % Calculation

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

PKSHA Technology's Gross Margin for the fiscal year that ended in Sep. 2023 is calculated as

Gross Margin % (A: Sep. 2023 )=Gross Profit (A: Sep. 2023 ) / Revenue (A: Sep. 2023 )
=6924.6 / 13908.918
=(Revenue - Cost of Goods Sold) / Revenue
=(13908.918 - 6984.299) / 13908.918
=49.79 %

PKSHA Technology'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 )
=2360.6 / 4258.665
=(Revenue - Cost of Goods Sold) / Revenue
=(4258.665 - 1898.083) / 4258.665
=55.43 %

* 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.


PKSHA Technology  (TSE:3993) 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

PKSHA Technology had a gross margin of 55.43% 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.


PKSHA Technology Gross Margin % Related Terms

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PKSHA Technology (TSE:3993) Business Description

Traded in Other Exchanges
Address
2-35-10 Hongo, Bunkyo-kyu, Hongosegawa Building, 4th Floor, Tokyo, JPN, 113-0033
PKSHA Technology Inc develops algorithm solutions mainly related to natural language processing, image recognition, machine learning / deep learning technology.

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