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Aida Engineering (Aida Engineering) Gross Margin %

: 16.85% (As of Dec. 2023)
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Gross Margin % is calculated as gross profit divided by its revenue. Aida Engineering's Gross Profit for the three months ended in Dec. 2023 was $19.9 Mil. Aida Engineering's Revenue for the three months ended in Dec. 2023 was $118.4 Mil. Therefore, Aida Engineering's Gross Margin % for the quarter that ended in Dec. 2023 was 16.85%.

Warning Sign:

Aida Engineering Ltd gross margin has been in long-term decline. The average rate of decline per year is -3.8%.


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

ADERY' s Gross Margin % Range Over the Past 10 Years
Min: 16.9   Med: 21.55   Max: 23.81
Current: 17.88


During the past 13 years, the highest Gross Margin % of Aida Engineering was 23.81%. The lowest was 16.90%. And the median was 21.55%.

ADERY's Gross Margin % is ranked worse than
74.62% of 2935 companies
in the Industrial Products industry
Industry Median: 26.44 vs ADERY: 17.88

Aida Engineering had a gross margin of 16.85% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Aida Engineering was -3.80% per year.


Aida Engineering Gross Margin % Historical Data

The historical data trend for Aida Engineering'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.

Array ( [0] => - [1] => - [2] => - [3] => - [4] => - [5] => 18.11 [6] => 21.97 [7] => 21.26 [8] => 17.44 [9] => 16.90 )
Aida Engineering Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Gross Margin %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 18.11 21.97 21.26 17.44 16.90

Aida Engineering Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Gross Margin % 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 Premium Member Only Premium Member Only Premium Member Only 16.25 18.05 18.52 18.07 16.85

Competitive Comparison

For the Specialty Industrial Machinery subindustry, Aida Engineering'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.


Aida Engineering Gross Margin % Distribution

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

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



Aida Engineering Gross Margin % Calculation

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

Aida Engineering'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 )
=87 / 514.685
=(Revenue - Cost of Goods Sold) / Revenue
=(514.685 - 427.698) / 514.685
=16.90 %

Aida Engineering'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 )
=19.9 / 118.369
=(Revenue - Cost of Goods Sold) / Revenue
=(118.369 - 98.429) / 118.369
=16.85 %

* 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.


Aida Engineering  (OTCPK:ADERY) 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

Aida Engineering had a gross margin of 16.85% 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.


Aida Engineering Gross Margin % Related Terms

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


Aida Engineering (Aida Engineering) Business Description

Traded in Other Exchanges
Address
2-10 Ohyama-cho, Sagamihara, JPN, 2291181
Aida Engineering Ltd is a Japan-based company that manufactures, sells, and services press machines and their ancillary facilities. The company's principal products comprise general-purpose servo presses, midsize and large servo presses, precision forming presses, general-purpose presses, midsize and large presses, high-speed automatic presses, cold forging presses, transfer feeders, coil feeders, and tooling dies. The company's services include overhaul, preventative maintenance, press inspections, machine relocation, and others. The company generates sales in Japan, Asia, the Americas, and Europe.

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