Excite Holdings Co (TSE:5571) Gross Margin % : 48.71% (As of Dec. 2023)

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What is Excite Holdings Co Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Excite Holdings Co's Gross Profit for the three months ended in Dec. 2023 was 円947 Mil. Excite Holdings Co's Revenue for the three months ended in Dec. 2023 was 円1,944 Mil. Therefore, Excite Holdings Co's Gross Margin % for the quarter that ended in Dec. 2023 was 48.71%.

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

TSE:5571' s Gross Margin % Range Over the Past 10 Years
Min: 45.46 Med: 45.51 Max: 47.32
Current: 47.32

During the past 3 years, the highest Gross Margin % of Excite Holdings Co was 47.32%. The lowest was 45.46%. And the median was 45.51%.

TSE:5571's Gross Margin % is ranked better than
56.29% of 2638 companies
in the Software industry
Industry Median: 41.845 vs TSE:5571: 47.32

Excite Holdings Co had a gross margin of 48.71% for the quarter that ended in Dec. 2023 => Durable competitive advantage

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

Excite Holdings Co Gross Margin % Historical Data

The historical data trend for Excite Holdings Co'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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Excite Holdings Co Gross Margin % Chart

Excite Holdings Co Annual Data

Trend

Mar21

Mar22

Mar23

Gross Margin %

45.46

45.51

47.19

Excite Holdings Co Quarterly Data
	Mar21	Mar22	Dec22	Mar23	Jun23	Sep23	Dec23
Gross Margin %	Get a 7-Day Free Trial			-	46.48	46.36	47.64	48.71

Competitive Comparison of Excite Holdings Co's Gross Margin %

For the Software - Application subindustry, Excite Holdings Co'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.

Excite Holdings Co's Gross Margin % Distribution in the Software Industry

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

* The bar in red indicates where Excite Holdings Co's Gross Margin % falls into.

Excite Holdings Co Gross Margin % Calculation

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

Excite Holdings Co'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 )
	=	3554.8	/	7533.314
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(7533.314 - 3978.503)	/	7533.314
	=	47.19 %

Excite Holdings Co'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 )
	=	946.9	/	1944.091
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(1944.091 - 997.199)	/	1944.091
	=	48.71 %

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.

Excite Holdings Co (TSE:5571) 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

Excite Holdings Co had a gross margin of 48.71% 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.

Excite Holdings Co Gross Margin % Related Terms

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Excite Holdings Co (TSE:5571) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Excite Holdings Co Ltd (TSE:5571) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

3-20-1 Minamiazabu, Daiwa Azabu Terrace 4th Floor, Minato-ku, Tokyo, JPN, 106-0047

Website

https://www.excite-holdings.co.jp

Excite Holdings Co Ltd is engaged in the business management and related operations of group companies, platform business, broadband business, and SaaS/DX Business.

Excite Holdings Co (TSE:5571) Headlines

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