Circlace (TSE:5029) Gross Margin % : 48.18% (As of Dec. 2023)

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What is Circlace Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Circlace's Gross Profit for the three months ended in Dec. 2023 was 円343 Mil. Circlace's Revenue for the three months ended in Dec. 2023 was 円712 Mil. Therefore, Circlace's Gross Margin % for the quarter that ended in Dec. 2023 was 48.18%.

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

TSE:5029' s Gross Margin % Range Over the Past 10 Years
Min: 49.54 Med: 51.39 Max: 53.87
Current: 49.61

During the past 4 years, the highest Gross Margin % of Circlace was 53.87%. The lowest was 49.54%. And the median was 51.39%.

TSE:5029's Gross Margin % is ranked better than
58.64% of 2628 companies
in the Software industry
Industry Median: 41.705 vs TSE:5029: 49.61

Circlace had a gross margin of 48.18% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Circlace was 0.00% per year.

Circlace Gross Margin % Historical Data

The historical data trend for Circlace'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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Circlace Gross Margin % Chart

Circlace Annual Data

Trend

Mar20

Mar21

Mar22

Mar23

Gross Margin %

53.09

49.54

53.87

49.68

Circlace Quarterly Data
	Mar20	Mar21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Gross Margin %	Get a 7-Day Free Trial						47.75	48.68	49.23	52.23	48.18

Competitive Comparison of Circlace's Gross Margin %

For the Software - Application subindustry, Circlace'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.

Circlace's Gross Margin % Distribution in the Software Industry

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

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

Circlace Gross Margin % Calculation

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

Circlace's Gross Margin for the fiscal year that ended in Mar. 2023 is calculated as

Gross Margin % (A: Mar. 2023 )	=	Gross Profit (A: Mar. 2023 )	/	Revenue (A: Mar. 2023 )
	=	1255.4	/	2527.139
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(2527.139 - 1271.761)	/	2527.139
	=	49.68 %

Circlace'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 )
	=	342.9	/	711.651
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(711.651 - 368.763)	/	711.651
	=	48.18 %

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.

Circlace (TSE:5029) 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

Circlace had a gross margin of 48.18% for the quarter that ended in Dec. 2023 => 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.

Circlace Gross Margin % Related Terms

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Circlace (TSE:5029) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Circlace Inc (TSE:5029) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

2-6-2 Otemachi, Chiyoda-ku, 12th Floor, Tokyo, JPN, 100-0004

Website

https://www.circlace.com

Circlace Inc is engaged in providing a one-stop service from design to development, establishment, maintenance and operation support for the introduction of cloud solutions. Further engaged in development and sales of SaaS products, consulting on business improvement using information and communication technology.

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