Nidec (TSE:6594) Gross Margin % : 19.11% (As of Mar. 2024)

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What is Nidec Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Nidec's Gross Profit for the three months ended in Mar. 2024 was 円113,426 Mil. Nidec's Revenue for the three months ended in Mar. 2024 was 円593,514 Mil. Therefore, Nidec's Gross Margin % for the quarter that ended in Mar. 2024 was 19.11%.

Warning Sign:

Nidec Corp gross margin has been in long-term decline. The average rate of decline per year is -2.6%.

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

TSE:6594' s Gross Margin % Range Over the Past 10 Years
Min: 18.42 Med: 22.71 Max: 23.96
Current: 21.19

During the past 13 years, the highest Gross Margin % of Nidec was 23.96%. The lowest was 18.42%. And the median was 22.71%.

TSE:6594's Gross Margin % is ranked worse than
65.45% of 2938 companies
in the Industrial Products industry
Industry Median: 26.39 vs TSE:6594: 21.19

Nidec had a gross margin of 19.11% for the quarter that ended in Mar. 2024 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Nidec was -2.60% per year.

Nidec Gross Margin % Historical Data

The historical data trend for Nidec'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.

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Nidec Gross Margin % Chart

Nidec Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Gross Margin %

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21.67

22.65

21.03

18.42

21.19

Nidec Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Gross Margin %	Get a 7-Day Free Trial															15.04	22.16	21.60	21.94	19.11

Competitive Comparison of Nidec's Gross Margin %

For the Specialty Industrial Machinery subindustry, Nidec'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.

Nidec's Gross Margin % Distribution in the Industrial Products Industry

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

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

Nidec Gross Margin % Calculation

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

Nidec's Gross Margin for the fiscal year that ended in Mar. 2024 is calculated as

Gross Margin % (A: Mar. 2024 )	=	Gross Profit (A: Mar. 2024 )	/	Revenue (A: Mar. 2024 )
	=	497612	/	2348202
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(2348202 - 1850590)	/	2348202
	=	21.19 %

Nidec's Gross Margin for the quarter that ended in Mar. 2024 is calculated as

Gross Margin % (Q: Mar. 2024 )	=	Gross Profit (Q: Mar. 2024 )	/	Revenue (Q: Mar. 2024 )
	=	113426	/	593514
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(593514 - 480088)	/	593514
	=	19.11 %

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.

Nidec (TSE:6594) 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

Nidec had a gross margin of 19.11% for the quarter that ended in Mar. 2024 => 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.

Nidec Gross Margin % Related Terms

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Nidec (TSE:6594) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Nidec Corp (TSE:6594) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

NNDNF:USA NJDCY:USA NIDEC:Mexico NIB:Germany NIB:Austria

Address

338 Kuzetonoshiro-cho, Minami-ku, Kyoto, JPN, 601-8205

Website

http://www.nidec.com

Nidec is a global leader of brushless DC motors. Brushless DC motors have advantages over other types of motors in power efficiency, silence, and durability. Nidec possesses the number-one market share in a wide variety of products, such as hard disk drive motors, optical disk drive motors, vibration motors on handsets, brushless motors for inverter air conditioners, and brushless motors for electric power steering on automobiles. It continues to benefit from the growing demand for power-efficient motors, driven by strengthening environmental regulations. Nidec sets an ambitious target to increase its revenue to JPY 3 trillion in fiscal 2025 from JPY 1.9 trillion in fiscal 2021.

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