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DDS (TSE:3782) Gross Margin % : 60.44% (As of Mar. 2023)


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What is DDS Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. DDS's Gross Profit for the three months ended in Mar. 2023 was 円124.0 Mil. DDS's Revenue for the three months ended in Mar. 2023 was 円205.1 Mil. Therefore, DDS's Gross Margin % for the quarter that ended in Mar. 2023 was 60.44%.


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


TSE:3782's Gross Margin % is not ranked *
in the Business Services industry.
Industry Median: 34.43
* Ranked among companies with meaningful Gross Margin % only.

DDS had a gross margin of 60.44% for the quarter that ended in Mar. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for DDS was 0.00% per year.


DDS Gross Margin % Historical Data

The historical data trend for DDS'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.

DDS Gross Margin % Chart

DDS Annual Data
Trend Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 64.91 59.65 49.28 49.01 52.73

DDS Quarterly Data
Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23
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 50.25 49.98 52.67 58.64 60.44

Competitive Comparison of DDS's Gross Margin %

For the Security & Protection Services subindustry, DDS'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.


DDS's Gross Margin % Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, DDS's Gross Margin % distribution charts can be found below:

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



DDS Gross Margin % Calculation

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

DDS's Gross Margin for the fiscal year that ended in Dec. 2022 is calculated as

Gross Margin % (A: Dec. 2022 )=Gross Profit (A: Dec. 2022 ) / Revenue (A: Dec. 2022 )
=497.1 / 942.78
=(Revenue - Cost of Goods Sold) / Revenue
=(942.78 - 445.682) / 942.78
=52.73 %

DDS's Gross Margin for the quarter that ended in Mar. 2023 is calculated as


Gross Margin % (Q: Mar. 2023 )=Gross Profit (Q: Mar. 2023 ) / Revenue (Q: Mar. 2023 )
=124 / 205.09
=(Revenue - Cost of Goods Sold) / Revenue
=(205.09 - 81.13) / 205.09
=60.44 %

* 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.


DDS  (TSE:3782) 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

DDS had a gross margin of 60.44% for the quarter that ended in Mar. 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.


DDS Gross Margin % Related Terms

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DDS (TSE:3782) Business Description

Traded in Other Exchanges
N/A
Address
DDS building, 7th Floor 3-6-41 Marunouchi, Naka-ku, Nagoya, JPN, 460-0002
DDS Inc is a fabless venture company engaged in the research and development of multimedia products. The company operates through two business divisions: Biometrics business and Research and Development/Customized Development business. The Biometrics division pursues the research, development, and sales of information technology-related products such as fingerprint authentication systems for PCs and cell phones using biometric authentication technology. The development division has a customized development system covering a wide range of technologies and product fields.

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