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Otsuka Holdings Co (Otsuka Holdings Co) Gross Margin % : 69.25% (As of Dec. 2023)


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What is Otsuka Holdings Co Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Otsuka Holdings Co's Gross Profit for the three months ended in Dec. 2023 was $2,595 Mil. Otsuka Holdings Co's Revenue for the three months ended in Dec. 2023 was $3,747 Mil. Therefore, Otsuka Holdings Co's Gross Margin % for the quarter that ended in Dec. 2023 was 69.25%.


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

OTSKY' s Gross Margin % Range Over the Past 10 Years
Min: 65.8   Med: 67.46   Max: 69.72
Current: 69.72


During the past 13 years, the highest Gross Margin % of Otsuka Holdings Co was 69.72%. The lowest was 65.80%. And the median was 67.46%.

OTSKY's Gross Margin % is ranked better than
83.84% of 990 companies
in the Drug Manufacturers industry
Industry Median: 46.8 vs OTSKY: 69.72

Otsuka Holdings Co had a gross margin of 69.25% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Otsuka Holdings Co was 0.70% per year.


Otsuka Holdings Co Gross Margin % Historical Data

The historical data trend for Otsuka Holdings 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.

* Premium members only.

Otsuka Holdings Co Gross Margin % Chart

Otsuka Holdings Co Annual Data
Trend Mar14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 67.68 69.09 66.96 67.23 69.72

Otsuka Holdings 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 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 69.80 69.49 69.73 70.37 69.25

Competitive Comparison of Otsuka Holdings Co's Gross Margin %

For the Drug Manufacturers - General subindustry, Otsuka Holdings 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.


Otsuka Holdings Co's Gross Margin % Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Otsuka Holdings Co's Gross Margin % distribution charts can be found below:

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



Otsuka Holdings Co Gross Margin % Calculation

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

Otsuka Holdings Co's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )=Gross Profit (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=9774.5 / 14019.634
=(Revenue - Cost of Goods Sold) / Revenue
=(14019.634 - 4245.128) / 14019.634
=69.72 %

Otsuka Holdings 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 )
=2594.9 / 3746.926
=(Revenue - Cost of Goods Sold) / Revenue
=(3746.926 - 1151.995) / 3746.926
=69.25 %

* 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.


Otsuka Holdings Co  (OTCPK:OTSKY) 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

Otsuka Holdings Co had a gross margin of 69.25% for the quarter that ended in Dec. 2023 => Durable 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.


Otsuka Holdings Co Gross Margin % Related Terms

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Otsuka Holdings Co (Otsuka Holdings Co) Business Description

Traded in Other Exchanges
Address
2-9 Kanda-Tsukasamachi, Chiyoda-ku, Tokyo, JPN, 101-0048
Otsuka Holdings Co Ltd is a Japan-based company operates in pharmaceuticals, nutraceuticals and consumer products. Business activity of the company includes providing healthcare solutions in the areas of nervous system, oncology, cardiovascular system, respiratory system, infectious disease and others. It is also engaged in the research and development of functional foods and beverages, such as electrolyte drinks, nutritional foods, soy snacks and dietary food. In addition it also operates multiple businesses related to chemicals, transportation, warehousing, and electronic equipment. Geographically, it operates in Japan, North America and in other regions of which Japan accounts for larger share of revenue.