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Vario Secure (TSE:4494) Gross Margin % : 53.65% (As of May. 2024)


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What is Vario Secure Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Vario Secure's Gross Profit for the three months ended in May. 2024 was 円361 Mil. Vario Secure's Revenue for the three months ended in May. 2024 was 円673 Mil. Therefore, Vario Secure's Gross Margin % for the quarter that ended in May. 2024 was 53.65%.

Warning Sign:

Vario Secure Inc gross margin has been in long-term decline. The average rate of decline per year is -2.4%.


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

TSE:4494' s Gross Margin % Range Over the Past 10 Years
Min: 52.8   Med: 61.3   Max: 62.23
Current: 53.83


During the past 7 years, the highest Gross Margin % of Vario Secure was 62.23%. The lowest was 52.80%. And the median was 61.30%.

TSE:4494's Gross Margin % is ranked better than
63.19% of 2657 companies
in the Software industry
Industry Median: 41.56 vs TSE:4494: 53.83

Vario Secure had a gross margin of 53.65% for the quarter that ended in May. 2024 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Vario Secure was -2.40% per year.


Vario Secure Gross Margin % Historical Data

The historical data trend for Vario Secure'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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Vario Secure Gross Margin % Chart

Vario Secure Annual Data
Trend Feb18 Feb19 Feb20 Feb21 Feb22 Feb23 Feb24
Gross Margin %
Get a 7-Day Free Trial 61.63 61.30 62.23 52.80 55.43

Vario Secure Quarterly Data
Feb19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24
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 60.23 58.19 55.25 48.24 53.65

Competitive Comparison of Vario Secure's Gross Margin %

For the Software - Infrastructure subindustry, Vario Secure'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.


Vario Secure's Gross Margin % Distribution in the Software Industry

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

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



Vario Secure Gross Margin % Calculation

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

Vario Secure's Gross Margin for the fiscal year that ended in Feb. 2024 is calculated as

Gross Margin % (A: Feb. 2024 )=Gross Profit (A: Feb. 2024 ) / Revenue (A: Feb. 2024 )
=1463.6 / 2640.423
=(Revenue - Cost of Goods Sold) / Revenue
=(2640.423 - 1176.785) / 2640.423
=55.43 %

Vario Secure's Gross Margin for the quarter that ended in May. 2024 is calculated as


Gross Margin % (Q: May. 2024 )=Gross Profit (Q: May. 2024 ) / Revenue (Q: May. 2024 )
=361.3 / 673.487
=(Revenue - Cost of Goods Sold) / Revenue
=(673.487 - 312.162) / 673.487
=53.65 %

* 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.


Vario Secure  (TSE:4494) 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

Vario Secure had a gross margin of 53.65% for the quarter that ended in May. 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.


Vario Secure Gross Margin % Related Terms

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Vario Secure Business Description

Traded in Other Exchanges
N/A
Address
Sumitomo Shoji Nishikicho, Building 1-6 Kandanishikicho Chiyoda-ku, Tokyo, JPN, 101-0054
Vario Secure Inc is engaged in providing internet security services which protect network environment of enterprises from various threats arising from internet usage, by utilizing its in-house developed security instruments and unique operation system. The company provides one-stop security services from installation and implementation to operation, monitoring and support to small and medium-sized enterprises which have difficulties in sparing dedicated personnel to IT issues which have been and are becoming sophisticated and complicated day to day.

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