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Focus Systems (TSE:4662) Gross Margin % : 11.89% (As of Sep. 2024)


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What is Focus Systems Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Focus Systems's Gross Profit for the three months ended in Sep. 2024 was 円947 Mil. Focus Systems's Revenue for the three months ended in Sep. 2024 was 円7,964 Mil. Therefore, Focus Systems's Gross Margin % for the quarter that ended in Sep. 2024 was 11.89%.

Warning Sign:

Focus Systems Corp gross margin has been in long-term decline. The average rate of decline per year is -2.7%.


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

TSE:4662' s Gross Margin % Range Over the Past 10 Years
Min: 11.61   Med: 13.32   Max: 13.98
Current: 12.52


During the past 13 years, the highest Gross Margin % of Focus Systems was 13.98%. The lowest was 11.61%. And the median was 13.32%.

TSE:4662's Gross Margin % is ranked worse than
90.53% of 2618 companies
in the Software industry
Industry Median: 41.435 vs TSE:4662: 12.52

Focus Systems had a gross margin of 11.89% for the quarter that ended in Sep. 2024 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Focus Systems was -2.70% per year.


Focus Systems Gross Margin % Historical Data

The historical data trend for Focus Systems'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.

Focus Systems Gross Margin % Chart

Focus Systems Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 13.68 13.30 13.35 12.78 12.04

Focus Systems Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 10.48 12.93 13.93 11.24 11.89

Competitive Comparison of Focus Systems's Gross Margin %

For the Information Technology Services subindustry, Focus Systems'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.


Focus Systems's Gross Margin % Distribution in the Software Industry

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

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



Focus Systems Gross Margin % Calculation

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

Focus Systems's Gross Margin for the fiscal year that ended in Mar. 2024 is calculated as

Gross Margin % (A: Mar. 2024 )=Gross Profit (A: Mar. 2024 ) / Revenue (A: Mar. 2024 )
=3795.3 / 31509.959
=(Revenue - Cost of Goods Sold) / Revenue
=(31509.959 - 27714.692) / 31509.959
=12.04 %

Focus Systems's Gross Margin for the quarter that ended in Sep. 2024 is calculated as


Gross Margin % (Q: Sep. 2024 )=Gross Profit (Q: Sep. 2024 ) / Revenue (Q: Sep. 2024 )
=947.1 / 7963.717
=(Revenue - Cost of Goods Sold) / Revenue
=(7963.717 - 7016.579) / 7963.717
=11.89 %

* 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.


Focus Systems  (TSE:4662) 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

Focus Systems had a gross margin of 11.89% for the quarter that ended in Sep. 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.


Focus Systems Gross Margin % Related Terms

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Focus Systems Business Description

Traded in Other Exchanges
N/A
Address
2-7-8 Higashi Gotanda Shinagawa-ku, Focus Gotanda Building, Tokyo, JPN, 141-0022
Focus Systems Corp is a Japan-based company operating in the Information technology (IT) industry. Its business activities are divided into three divisions including System integration, IT service and Information Security. The company has established an integrated system including information system consulting, development, operation, and maintenance. It also provides security products incorporating security functions in customer systems, survey, and analysis in digital forensics.

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