Honda Motor Co (BSP:HOND34) Gross Margin %

: 21.78% (As of Dec. 2023)

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Gross Margin % is calculated as gross profit divided by its revenue. Honda Motor Co's Gross Profit for the three months ended in Dec. 2023 was R$39,956 Mil. Honda Motor Co's Revenue for the three months ended in Dec. 2023 was R$183,429 Mil. Therefore, Honda Motor Co's Gross Margin % for the quarter that ended in Dec. 2023 was 21.78%.

Warning Sign:

Honda Motor Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -1.6%.

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

BSP:HOND34' s Gross Margin % Range Over the Past 10 Years
Min: 19.7 Med: 21.35 Max: 23.31
Current: 21.23

During the past 13 years, the highest Gross Margin % of Honda Motor Co was 23.31%. The lowest was 19.70%. And the median was 21.35%.

BSP:HOND34's Gross Margin % is ranked better than
56.62% of 1268 companies
in the Vehicles & Parts industry
Industry Median: 19.36 vs BSP:HOND34: 21.23

Honda Motor Co had a gross margin of 21.78% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Honda Motor Co was -1.60% per year.

Honda Motor Co Gross Margin % Historical Data

The historical data trend for Honda Motor 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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Honda Motor Co Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Gross Margin %

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20.82

20.62

20.73

20.51

19.70

Honda Motor Co Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Gross Margin %	Get a 7-Day Free Trial															20.25	19.47	21.56	21.88	21.78

Competitive Comparison

For the Auto Manufacturers subindustry, Honda Motor 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.

Honda Motor Co Gross Margin % Distribution

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

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

Honda Motor Co Gross Margin % Calculation

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

Honda Motor Co's Gross Margin for the fiscal year that ended in Mar. 2023 is calculated as

Gross Margin % (A: Mar. 2023 )	=	Gross Profit (A: Mar. 2023 )	/	Revenue (A: Mar. 2023 )
	=	129824.7	/	658856.377
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(658856.377 - 529031.659)	/	658856.377
	=	19.70 %

Honda Motor 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 )
	=	39956.4	/	183429.204
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(183429.204 - 143472.769)	/	183429.204
	=	21.78 %

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.

Honda Motor Co (BSP:HOND34) 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

Honda Motor Co had a gross margin of 21.78% for the quarter that ended in Dec. 2023 => 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.

Honda Motor Co Gross Margin % Related Terms

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Honda Motor Co (BSP:HOND34) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Honda Motor Co Ltd (BSP:HOND34) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

HNDAF:USA HMC:USA HMC:Mexico 7267:Japan HDM:Germany HMC:Argentina

Address

Number 1-1, Minami-Aoyama 2-chome, Minato-ku, Tokyo, JPN, 107-8556

Website

https://global.honda

Incorporated in 1948, Honda Motor was originally a motorcycle manufacturer. Today, the firm makes automobiles, motorcycles, and power products such as boat engines, generators, and lawnmowers. Including joint ventures, Honda sold 22.4 million cars and motorcycles in fiscal 2023 (3.7 million of which were autos), and consolidated sales were JPY 16.9 trillion. Automobiles constitute 63% of revenue and motorcycles 17%, with the rest split between power products and financial services. Honda also makes robots and private jets.

Honda Motor Co (BSP:HOND34) Headlines

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