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Yorozu (TSE:7294) Gross Margin % : 13.78% (As of Mar. 2024)


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What is Yorozu Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Yorozu's Gross Profit for the three months ended in Mar. 2024 was 円7,212 Mil. Yorozu's Revenue for the three months ended in Mar. 2024 was 円52,353 Mil. Therefore, Yorozu's Gross Margin % for the quarter that ended in Mar. 2024 was 13.78%.

Warning Sign:

Yorozu Corp gross margin has been in long-term decline. The average rate of decline per year is -1.1%.


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

TSE:7294' s Gross Margin % Range Over the Past 10 Years
Min: 10.3   Med: 11.43   Max: 13.59
Current: 10.79


During the past 13 years, the highest Gross Margin % of Yorozu was 13.59%. The lowest was 10.30%. And the median was 11.43%.

TSE:7294's Gross Margin % is ranked worse than
82.33% of 1279 companies
in the Vehicles & Parts industry
Industry Median: 20.04 vs TSE:7294: 10.79

Yorozu had a gross margin of 13.78% for the quarter that ended in Mar. 2024 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Yorozu was -1.10% per year.


Yorozu Gross Margin % Historical Data

The historical data trend for Yorozu'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.

Yorozu Gross Margin % Chart

Yorozu 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 10.37 10.30 11.23 10.70 10.49

Yorozu Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
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 8.57 9.38 9.51 13.78 9.90

Competitive Comparison of Yorozu's Gross Margin %

For the Auto Parts subindustry, Yorozu'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.


Yorozu's Gross Margin % Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Yorozu's Gross Margin % distribution charts can be found below:

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



Yorozu Gross Margin % Calculation

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

Yorozu'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 )
=19038 / 181468
=(Revenue - Cost of Goods Sold) / Revenue
=(181468 - 162430) / 181468
=10.49 %

Yorozu's Gross Margin for the quarter that ended in Mar. 2024 is calculated as


Gross Margin % (Q: Mar. 2024 )=Gross Profit (Q: Mar. 2024 ) / Revenue (Q: Mar. 2024 )
=7212 / 52353
=(Revenue - Cost of Goods Sold) / Revenue
=(52353 - 45141) / 52353
=13.78 %

* 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.


Yorozu  (TSE:7294) 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

Yorozu had a gross margin of 13.78% for the quarter that ended in Mar. 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.


Yorozu Gross Margin % Related Terms

Thank you for viewing the detailed overview of Yorozu's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Yorozu Business Description

Traded in Other Exchanges
N/A
Address
3-7-60 Tarumachi Kohoku-ku, Yokohama-shi, Kanagawa, JPN, 222-8560
Yorozu Corp is a manufacturer of automotive parts and components. The company produces front and rear suspension members, rear beams, links, oil pans, break paddles, frames and frame components, rear cab mounts and links, and front frames used in cars, pickup cars, trucks, and tractors. Next to its auto part business, the company manufactures dies and equipment for metal production purposes. The company operates in three major markets--Japan, the Americas, and Asia--all of which contribute equally to the company's top line.

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