Es Networks Co (TSE:5867) Gross Margin % : 46.35% (As of Dec. 2023)

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What is Es Networks Co Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Es Networks Co's Gross Profit for the six months ended in Dec. 2023 was 円1,257 Mil. Es Networks Co's Revenue for the six months ended in Dec. 2023 was 円2,711 Mil. Therefore, Es Networks Co's Gross Margin % for the quarter that ended in Dec. 2023 was 46.35%.

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

TSE:5867' s Gross Margin % Range Over the Past 10 Years
Min: 42.4 Med: 46.35 Max: 46.7
Current: 46.35

During the past 3 years, the highest Gross Margin % of Es Networks Co was 46.70%. The lowest was 42.40%. And the median was 46.35%.

TSE:5867's Gross Margin % is ranked better than
65.76% of 990 companies
in the Business Services industry
Industry Median: 34.71 vs TSE:5867: 46.35

Es Networks Co had a gross margin of 46.35% for the quarter that ended in Dec. 2023 => Durable competitive advantage

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

Es Networks Co Gross Margin % Historical Data

The historical data trend for Es Networks 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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Es Networks Co Gross Margin % Chart

Es Networks Co Annual Data

Trend

Dec21

Dec22

Dec23

Gross Margin %

42.40

46.70

46.35

Es Networks Co Semi-Annual Data
	Dec21	Dec22	Dec23
Gross Margin %	42.40	46.70	46.35

Competitive Comparison of Es Networks Co's Gross Margin %

For the Consulting Services subindustry, Es Networks 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.

Es Networks Co's Gross Margin % Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, Es Networks Co's Gross Margin % distribution charts can be found below:

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

Es Networks Co Gross Margin % Calculation

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

Es Networks Co's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )	=	Gross Profit (A: Dec. 2023 )	/	Revenue (A: Dec. 2023 )
	=	1256.7	/	2711.258
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(2711.258 - 1454.56)	/	2711.258
	=	46.35 %

Es Networks 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 )
	=	1256.7	/	2711.258
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(2711.258 - 1454.56)	/	2711.258
	=	46.35 %

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.

Es Networks Co (TSE:5867) 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

Es Networks Co had a gross margin of 46.35% 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.

Es Networks Co Gross Margin % Related Terms

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Es Networks Co (TSE:5867) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » Es Networks Co Ltd (TSE:5867) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

2-7-2, Marunouchi, JP Tower Building, 23 Floor, Chiyoda-ku, Tokyo, JPN, 100- 7023

Website

https://www.esnet.co.jp

Es Networks Co Ltd is a group of accounting, finance, and tax professionals that supports the sustainable growth of companies from the perspective of management.

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