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NEPON (TSE:7985) Gross Margin % : 33.65% (As of Mar. 2024)


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What is NEPON Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. NEPON's Gross Profit for the three months ended in Mar. 2024 was 円625 Mil. NEPON's Revenue for the three months ended in Mar. 2024 was 円1,858 Mil. Therefore, NEPON's Gross Margin % for the quarter that ended in Mar. 2024 was 33.65%.


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

TSE:7985' s Gross Margin % Range Over the Past 10 Years
Min: 33.65   Med: 36.25   Max: 37.41
Current: 35.87


During the past 13 years, the highest Gross Margin % of NEPON was 37.41%. The lowest was 33.65%. And the median was 36.25%.

TSE:7985's Gross Margin % is ranked better than
73.21% of 2953 companies
in the Industrial Products industry
Industry Median: 26.71 vs TSE:7985: 35.87

NEPON had a gross margin of 33.65% for the quarter that ended in Mar. 2024 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for NEPON was -0.10% per year.


NEPON Gross Margin % Historical Data

The historical data trend for NEPON'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.

NEPON Gross Margin % Chart

NEPON 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 35.68 36.96 36.35 37.41 35.87

NEPON Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 37.17 31.57 36.19 40.02 33.65

Competitive Comparison of NEPON's Gross Margin %

For the Specialty Industrial Machinery subindustry, NEPON'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.


NEPON's Gross Margin % Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, NEPON's Gross Margin % distribution charts can be found below:

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



NEPON Gross Margin % Calculation

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

NEPON'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 )
=2788.4 / 7774.331
=(Revenue - Cost of Goods Sold) / Revenue
=(7774.331 - 4985.885) / 7774.331
=35.87 %

NEPON'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 )
=625.4 / 1858.463
=(Revenue - Cost of Goods Sold) / Revenue
=(1858.463 - 1233.109) / 1858.463
=33.65 %

* 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.


NEPON  (TSE:7985) 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

NEPON had a gross margin of 33.65% for the quarter that ended in Mar. 2024 => Competition eroding margins


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.


NEPON Gross Margin % Related Terms

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


NEPON Business Description

Traded in Other Exchanges
N/A
Address
Shibuya 1-chome 4-2, Shibuya-ku, Tokyo, JPN, 150-0002
NEPON Inc manufactures heating equipment for greenhouses and portable flush toilets. It also manufactures and sales agricultural machine which includes hot air heater for horticulture, heat pump for facilities gardening, hot water boiler for facilities gardening; General purpose equipment which include hot air heaters for buildings and factories, hot water boilers for commercial use, hot air generators for drying; Sanitary machine include foam wash type simple flush toilet, flushing type simple flush toilet, commercial foam wash toilet, toilet bowl; Construction related products include Design and construction of pipework, electrical work.

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