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ValueCommerce Co (TSE:2491) Gross Margin %

: 34.81% (As of Dec. 2023)
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Gross Margin % is calculated as gross profit divided by its revenue. ValueCommerce Co's Gross Profit for the three months ended in Dec. 2023 was 円2,661 Mil. ValueCommerce Co's Revenue for the three months ended in Dec. 2023 was 円7,645 Mil. Therefore, ValueCommerce Co's Gross Margin % for the quarter that ended in Dec. 2023 was 34.81%.


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

TSE:2491' s Gross Margin % Range Over the Past 10 Years
Min: 22.31   Med: 33.79   Max: 39.71
Current: 34.53


During the past 13 years, the highest Gross Margin % of ValueCommerce Co was 39.71%. The lowest was 22.31%. And the median was 33.79%.

TSE:2491's Gross Margin % is ranked worse than
56.56% of 960 companies
in the Media - Diversified industry
Industry Median: 38.785 vs TSE:2491: 34.53

ValueCommerce Co had a gross margin of 34.81% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for ValueCommerce Co was 0.80% per year.


ValueCommerce Co Gross Margin % Historical Data

The historical data trend for ValueCommerce 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.

ValueCommerce Co Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 34.34 39.71 38.38 35.92 34.53

ValueCommerce 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 % 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 33.34 34.51 34.03 34.74 34.81

Competitive Comparison

For the Advertising Agencies subindustry, ValueCommerce 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.


ValueCommerce Co Gross Margin % Distribution

For the Media - Diversified industry and Communication Services sector, ValueCommerce Co's Gross Margin % distribution charts can be found below:

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



ValueCommerce Co Gross Margin % Calculation

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

ValueCommerce 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 )
=10149 / 29396
=(Revenue - Cost of Goods Sold) / Revenue
=(29396 - 19247) / 29396
=34.53 %

ValueCommerce 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 )
=2661 / 7645
=(Revenue - Cost of Goods Sold) / Revenue
=(7645 - 4984) / 7645
=34.81 %

* 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.


ValueCommerce Co  (TSE:2491) 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

ValueCommerce Co had a gross margin of 34.81% 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.


ValueCommerce Co Gross Margin % Related Terms

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ValueCommerce Co (TSE:2491) Business Description

Traded in Other Exchanges
N/A
Address
Nihonseimei Akasaka Building 5F, 8-1-19 Akasaka, Minato, Tokyo, JPN, 107-0052
ValueCommerce Co Ltd is a Japan-based information technology company engaged in the provision of internet advertising delivery services. The company's service portfolio comprises affiliate marketing service, StoreMatch service and Store's R8. The affiliate marketing service provides compensation based on the performances of advertising for e-commerce sites. The StoreMatch Service provides pay-per-click internet advertising for stores listing on online shopping malls. The Store's R8 service is a marketing automation system customized for Yahoo! shopping.

ValueCommerce Co (TSE:2491) Headlines

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