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Internet Initiative Japan (Internet Initiative Japan) Gross Margin % : 23.00% (As of Dec. 2023)


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What is Internet Initiative Japan Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Internet Initiative Japan's Gross Profit for the three months ended in Dec. 2023 was $116 Mil. Internet Initiative Japan's Revenue for the three months ended in Dec. 2023 was $506 Mil. Therefore, Internet Initiative Japan's Gross Margin % for the quarter that ended in Dec. 2023 was 23.00%.


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

IIJIY' s Gross Margin % Range Over the Past 10 Years
Min: 15.06   Med: 17.74   Max: 23.17
Current: 23.17


During the past 13 years, the highest Gross Margin % of Internet Initiative Japan was 23.17%. The lowest was 15.06%. And the median was 17.74%.

IIJIY's Gross Margin % is ranked worse than
81.92% of 354 companies
in the Telecommunication Services industry
Industry Median: 48.97 vs IIJIY: 23.17

Internet Initiative Japan had a gross margin of 23.00% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Internet Initiative Japan was 9.50% per year.


Internet Initiative Japan Gross Margin % Historical Data

The historical data trend for Internet Initiative Japan'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.

Internet Initiative Japan Gross Margin % Chart

Internet Initiative Japan Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 15.06 15.94 18.91 22.81 22.92

Internet Initiative Japan 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 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 23.93 24.12 22.47 23.05 23.00

Competitive Comparison of Internet Initiative Japan's Gross Margin %

For the Telecom Services subindustry, Internet Initiative Japan'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.


Internet Initiative Japan's Gross Margin % Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Internet Initiative Japan's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Internet Initiative Japan's Gross Margin % falls into.



Internet Initiative Japan Gross Margin % Calculation

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

Internet Initiative Japan'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 )
=433.2 / 1890.617
=(Revenue - Cost of Goods Sold) / Revenue
=(1890.617 - 1457.382) / 1890.617
=22.92 %

Internet Initiative Japan'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 )
=116.4 / 506.315
=(Revenue - Cost of Goods Sold) / Revenue
=(506.315 - 389.883) / 506.315
=23.00 %

* 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.


Internet Initiative Japan  (OTCPK:IIJIY) 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

Internet Initiative Japan had a gross margin of 23.00% 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.


Internet Initiative Japan Gross Margin % Related Terms

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Internet Initiative Japan (Internet Initiative Japan) Business Description

Traded in Other Exchanges
Address
Iidabashi Grand Bloom, 2-10-2 Fujimi, Chiyoda-ku, Tokyo, JPN, 102-0071
Internet Initiative Japan Inc. is a provider of a variety of services including Internet access, outsourcing, and systems integration. Its Internet access services span dial-up, mobile, and broadband technologies. Its wide area network services allow secure data sharing over Internet virtual private networks, independently developed routers, and closed wide area networks. Its outsourcing services include cloud, content delivery, data center, and security services. The firm generates nearly all its revenue in Japan.