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Inter Action (TSE:7725) Gross Margin % : 46.55% (As of Nov. 2024)


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What is Inter Action Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Inter Action's Gross Profit for the three months ended in Nov. 2024 was 円787 Mil. Inter Action's Revenue for the three months ended in Nov. 2024 was 円1,690 Mil. Therefore, Inter Action's Gross Margin % for the quarter that ended in Nov. 2024 was 46.55%.

Warning Sign:

Inter Action Corp gross margin has been in long-term decline. The average rate of decline per year is -2.2%.


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

TSE:7725' s Gross Margin % Range Over the Past 10 Years
Min: 32.32   Med: 45.04   Max: 51.95
Current: 46.87


During the past 13 years, the highest Gross Margin % of Inter Action was 51.95%. The lowest was 32.32%. And the median was 45.04%.

TSE:7725's Gross Margin % is ranked better than
85.13% of 2415 companies
in the Hardware industry
Industry Median: 24.66 vs TSE:7725: 46.87

Inter Action had a gross margin of 46.55% for the quarter that ended in Nov. 2024 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Inter Action was -2.20% per year.


Inter Action Gross Margin % Historical Data

The historical data trend for Inter Action'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.

Inter Action Gross Margin % Chart

Inter Action Annual Data
Trend May15 May16 May17 May18 May19 May20 May21 May22 May23 May24
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 49.01 51.95 45.48 48.51 42.64

Inter Action Quarterly Data
May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Aug24 Nov24 Feb25
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 41.66 47.63 50.52 46.55 38.77

Competitive Comparison of Inter Action's Gross Margin %

For the Electronic Components subindustry, Inter Action'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.


Inter Action's Gross Margin % Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Inter Action's Gross Margin % distribution charts can be found below:

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


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Inter Action Gross Margin % Calculation

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

Inter Action's Gross Margin for the fiscal year that ended in May. 2024 is calculated as

Gross Margin % (A: May. 2024 )=Gross Profit (A: May. 2024 ) / Revenue (A: May. 2024 )
=3307 / 7754.732
=(Revenue - Cost of Goods Sold) / Revenue
=(7754.732 - 4447.749) / 7754.732
=42.64 %

Inter Action's Gross Margin for the quarter that ended in Nov. 2024 is calculated as


Gross Margin % (Q: Nov. 2024 )=Gross Profit (Q: Nov. 2024 ) / Revenue (Q: Nov. 2024 )
=786.8 / 1690.403
=(Revenue - Cost of Goods Sold) / Revenue
=(1690.403 - 903.567) / 1690.403
=46.55 %

* 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.


Inter Action  (TSE:7725) 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

Inter Action had a gross margin of 46.55% for the quarter that ended in Nov. 2024 => 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.


Inter Action Gross Margin % Related Terms

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Inter Action Business Description

Traded in Other Exchanges
N/A
Address
1-1, Fukuura, Kanazawa-ku, Yokohama-shi, Kanagawa-ken, JPN, 236-0004
Inter Action Corp is engaged in IoT related business, environmental energy business which include drying and deodorizing equipment for exhaust gas treatment equipment, and industry 4.0 promotion project which include precision anti-vibration device, 3D modelling design, and gear testing machine.

Inter Action Headlines

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