NHK Spring Co (NHK Spring Co) Gross Margin %

: 11.77% (As of Dec. 2023)

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Gross Margin % is calculated as gross profit divided by its revenue. NHK Spring Co's Gross Profit for the three months ended in Dec. 2023 was $164 Mil. NHK Spring Co's Revenue for the three months ended in Dec. 2023 was $1,390 Mil. Therefore, NHK Spring Co's Gross Margin % for the quarter that ended in Dec. 2023 was 11.77%.

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

NHKGF' s Gross Margin % Range Over the Past 10 Years
Min: 9.63 Med: 12.29 Max: 13.53
Current: 10.17

During the past 13 years, the highest Gross Margin % of NHK Spring Co was 13.53%. The lowest was 9.63%. And the median was 12.29%.

NHKGF's Gross Margin % is ranked worse than
82.72% of 1267 companies
in the Vehicles & Parts industry
Industry Median: 19.36 vs NHKGF: 10.17

NHK Spring Co had a gross margin of 11.77% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for NHK Spring Co was 0.50% per year.

NHK Spring Co Gross Margin % Historical Data

The historical data trend for NHK Spring 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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NHK Spring Co Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Gross Margin %

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10.71

10.19

9.63

12.57

11.66

NHK Spring 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															11.70	9.79	10.11	8.84	11.77

Competitive Comparison

For the Auto Parts subindustry, NHK Spring 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.

NHK Spring Co Gross Margin % Distribution

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

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

NHK Spring Co Gross Margin % Calculation

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

NHK Spring 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 )
	=	604.8	/	5186.471
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(5186.471 - 4581.71)	/	5186.471
	=	11.66 %

NHK Spring 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 )
	=	163.6	/	1389.713
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(1389.713 - 1226.15)	/	1389.713
	=	11.77 %

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.

NHK Spring Co (OTCPK:NHKGF) 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

NHK Spring Co had a gross margin of 11.77% for the quarter that ended in Dec. 2023 => No sustainable 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.

NHK Spring Co Gross Margin % Related Terms

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NHK Spring Co (NHK Spring Co) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » NHK Spring Co Ltd (OTCPK:NHKGF) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

5991:Japan

Address

3-10 Fukuura, Kanazawa-ku, Yokohama, JPN, 236-0004

Website

http://www.nhkspg.co.jp

NHK Spring Co Ltd is a Japanese manufacturer of suspension springs for automobiles and precision springs used in hard disk drive components. The company also produces leaf springs, coil springs, stabilizer bars, torsion bars, gas springs, automobile seats and seating components, hard disk drives suspensions and mechanical components, LCD/semiconductor testing probe units, and industrial machinery and equipment parts. The automotive suspension springs and precision springs segments and automotive seating segment generate the majority of NHK Spring's revenue. Geographically, Japan is the largest end market followed by other Asian countries and North America.

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