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Shin-Etsu Chemical Co Gross Margin %

: 36.22% (As of Dec. 2020)
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Gross Margin % is calculated as gross profit divided by its revenue. Shin-Etsu Chemical Co's Gross Profit for the three months ended in Dec. 2020 was $1,326 Mil. Shin-Etsu Chemical Co's Revenue for the three months ended in Dec. 2020 was $3,660 Mil. Therefore, Shin-Etsu Chemical Co's Gross Margin % for the quarter that ended in Dec. 2020 was 36.22%.


OTCPK:SHECF' s Gross Margin % Range Over the Past 10 Years
Min: 23.78   Med: 26.22   Max: 36
Current: 35.46

23.78
36

During the past 13 years, the highest Gross Margin % of Shin-Etsu Chemical Co was 36.00%. The lowest was 23.78%. And the median was 26.22%.

OTCPK:SHECF's Gross Margin % is ranked higher than
76% of the 1346 Companies
in the Chemicals industry.

( Industry Median: 25.18 vs. OTCPK:SHECF: 35.46 )

Shin-Etsu Chemical Co had a gross margin of 36.22% for the quarter that ended in Dec. 2020 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Shin-Etsu Chemical Co was 7.80% per year.


Shin-Etsu Chemical Co Gross Margin % Historical Data

* 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.

Shin-Etsu Chemical Co Annual Data
Mar11 Mar12 Mar13 Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20
Gross Margin % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 27.33 29.82 33.19 34.76 36.00

Shin-Etsu Chemical Co Quarterly Data
Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20
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 37.52 33.06 35.66 36.97 36.22

Competitive Comparison
* 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.


Shin-Etsu Chemical Co Gross Margin % Distribution

* The bar in red indicates where Shin-Etsu Chemical Co's Gross Margin % falls into.



Shin-Etsu Chemical Co Gross Margin % Calculation

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

Shin-Etsu Chemical Co's Gross Margin for the fiscal year that ended in Mar. 2020 is calculated as

Gross Margin % (A: Mar. 2020 )=Gross Profit (A: Mar. 2020 ) / Revenue (A: Mar. 2020 )
=5161.7 / 14336.061181064
=(Revenue - Cost of Goods Sold) / Revenue
=(14336.061181064 - 9174.3918534225) / 14336.061181064
=36.00 %

Shin-Etsu Chemical Co's Gross Margin for the quarter that ended in Dec. 2020 is calculated as


Gross Margin % (Q: Dec. 2020 )=Gross Profit (Q: Dec. 2020 ) / Revenue (Q: Dec. 2020 )
=1325.5 / 3659.9091287458
=(Revenue - Cost of Goods Sold) / Revenue
=(3659.9091287458 - 2334.3757707486) / 3659.9091287458
=36.22 %

* 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.


Shin-Etsu Chemical Co  (OTCPK:SHECF) 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

Shin-Etsu Chemical Co had a gross margin of 36.22% for the quarter that ended in Dec. 2020 => 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.


Shin-Etsu Chemical Co Gross Margin % Related Terms


Shin-Etsu Chemical Co Gross Margin % Headlines

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