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Japan Process Development Co (TSE:9651) Gross Margin % : 21.60% (As of May. 2024)


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What is Japan Process Development Co Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Japan Process Development Co's Gross Profit for the three months ended in May. 2024 was 円558 Mil. Japan Process Development Co's Revenue for the three months ended in May. 2024 was 円2,586 Mil. Therefore, Japan Process Development Co's Gross Margin % for the quarter that ended in May. 2024 was 21.60%.


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

TSE:9651' s Gross Margin % Range Over the Past 10 Years
Min: 19.81   Med: 21.38   Max: 22.44
Current: 21.6


During the past 13 years, the highest Gross Margin % of Japan Process Development Co was 22.44%. The lowest was 19.81%. And the median was 21.38%.

TSE:9651's Gross Margin % is ranked worse than
79.11% of 2618 companies
in the Software industry
Industry Median: 41.435 vs TSE:9651: 21.60

Japan Process Development Co had a gross margin of 21.60% for the quarter that ended in May. 2024 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Japan Process Development Co was -0.10% per year.


Japan Process Development Co Gross Margin % Historical Data

The historical data trend for Japan Process Development 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.

Japan Process Development Co Gross Margin % Chart

Japan Process Development Co 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 22.44 22.26 22.20 21.52 21.60

Japan Process Development Co Quarterly Data
Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24
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 21.58 20.68 21.98 22.11 21.60

Competitive Comparison of Japan Process Development Co's Gross Margin %

For the Software - Application subindustry, Japan Process Development 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.


Japan Process Development Co's Gross Margin % Distribution in the Software Industry

For the Software industry and Technology sector, Japan Process Development Co's Gross Margin % distribution charts can be found below:

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



Japan Process Development Co Gross Margin % Calculation

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

Japan Process Development Co'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 )
=2045 / 9468.657
=(Revenue - Cost of Goods Sold) / Revenue
=(9468.657 - 7423.633) / 9468.657
=21.60 %

Japan Process Development Co's Gross Margin for the quarter that ended in May. 2024 is calculated as


Gross Margin % (Q: May. 2024 )=Gross Profit (Q: May. 2024 ) / Revenue (Q: May. 2024 )
=558.4 / 2585.589
=(Revenue - Cost of Goods Sold) / Revenue
=(2585.589 - 2027.199) / 2585.589
=21.60 %

* 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.


Japan Process Development Co  (TSE:9651) 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

Japan Process Development Co had a gross margin of 21.60% for the quarter that ended in May. 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.


Japan Process Development Co Gross Margin % Related Terms

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Japan Process Development Co Business Description

Traded in Other Exchanges
N/A
Address
2-4-1 Hamamatsu-cho, World Trade Center Building, 26th Floor, Minato-ku, Tokyo, JPN, 105-6126
Japan Process Development Co Ltd is a Japan based system integration and software development company. It is involved in the control system business, automotive system business, specific information system business, embedded systems business, IT service business and others.

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