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Furukawa Co (TSE:5715) Gross Margin % : 13.79% (As of Sep. 2024)


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What is Furukawa Co Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Furukawa Co's Gross Profit for the three months ended in Sep. 2024 was 円6,325 Mil. Furukawa Co's Revenue for the three months ended in Sep. 2024 was 円45,865 Mil. Therefore, Furukawa Co's Gross Margin % for the quarter that ended in Sep. 2024 was 13.79%.

Warning Sign:

Furukawa Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -1.8%.


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

TSE:5715' s Gross Margin % Range Over the Past 10 Years
Min: 13.11   Med: 15.04   Max: 15.9
Current: 14.42


During the past 13 years, the highest Gross Margin % of Furukawa Co was 15.90%. The lowest was 13.11%. And the median was 15.04%.

TSE:5715's Gross Margin % is ranked worse than
64.54% of 691 companies
in the Metals & Mining industry
Industry Median: 22.19 vs TSE:5715: 14.42

Furukawa Co had a gross margin of 13.79% for the quarter that ended in Sep. 2024 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Furukawa Co was -1.80% per year.


Furukawa Co Gross Margin % Historical Data

The historical data trend for Furukawa 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.

* Premium members only.

Furukawa Co Gross Margin % Chart

Furukawa Co 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 15.90 13.90 13.11 13.36 15.00

Furukawa Co Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
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 14.88 14.30 14.75 13.79 14.77

Competitive Comparison of Furukawa Co's Gross Margin %

For the Other Industrial Metals & Mining subindustry, Furukawa 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.


Furukawa Co's Gross Margin % Distribution in the Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, Furukawa Co's Gross Margin % distribution charts can be found below:

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


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Furukawa Co Gross Margin % Calculation

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

Furukawa Co'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 )
=28245 / 188255
=(Revenue - Cost of Goods Sold) / Revenue
=(188255 - 160010) / 188255
=15.00 %

Furukawa Co'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 )
=6325 / 45865
=(Revenue - Cost of Goods Sold) / Revenue
=(45865 - 39540) / 45865
=13.79 %

* 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.


Furukawa Co  (TSE:5715) 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

Furukawa Co had a gross margin of 13.79% 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.


Furukawa Co Gross Margin % Related Terms

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Furukawa Co Business Description

Traded in Other Exchanges
Address
2-3, Marunouchi 2-chome, Chiyoda-ku, Tokyo, JPN, 100-8370
Furukawa Co Ltd is a Japan-based company that primarily produces and sells machinery products, smelts on consignment and sells copper products, and produces electronic materials and chemical products. The company generates the majority of its sales from four major segments: industrial machinery, rock drill machinery, UNIC machinery, and metals. The industrial machinery segment supplies environmental machinery, pumps, and industrial machinery. The rock drill machinery segment produces and sells rock drill machines. The UNIC machinery segment produces and distributes cranes and carriers. The metals segment smelts copper products and supplies other metal products including ore, gold, and silver. The company generates the majority of its sales from the Japanese domestic market.

Furukawa Co Headlines

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