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Fanuc (TSE:6954) Gross Margin % : 37.47% (As of Dec. 2023)


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What is Fanuc Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Fanuc's Gross Profit for the three months ended in Dec. 2023 was 円74,128 Mil. Fanuc's Revenue for the three months ended in Dec. 2023 was 円197,830 Mil. Therefore, Fanuc's Gross Margin % for the quarter that ended in Dec. 2023 was 37.47%.

Warning Sign:

Fanuc Corp gross margin has been in long-term decline. The average rate of decline per year is -1.8%.


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

TSE:6954' s Gross Margin % Range Over the Past 10 Years
Min: 34.69   Med: 41.08   Max: 51.94
Current: 34.69


During the past 13 years, the highest Gross Margin % of Fanuc was 51.94%. The lowest was 34.69%. And the median was 41.08%.

TSE:6954's Gross Margin % is ranked better than
72.05% of 2937 companies
in the Industrial Products industry
Industry Median: 26.45 vs TSE:6954: 34.69

Fanuc had a gross margin of 37.47% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Fanuc was -1.80% per year.


Fanuc Gross Margin % Historical Data

The historical data trend for Fanuc'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.

Fanuc Gross Margin % Chart

Fanuc Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 35.84 36.63 40.33 38.20 34.69

Fanuc 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 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 35.63 32.57 34.14 37.47 34.60

Competitive Comparison of Fanuc's Gross Margin %

For the Specialty Industrial Machinery subindustry, Fanuc'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.


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

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

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



Fanuc Gross Margin % Calculation

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

Fanuc'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 )
=275844 / 795274
=(Revenue - Cost of Goods Sold) / Revenue
=(795274 - 519430) / 795274
=34.69 %

Fanuc'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 )
=74128 / 197830
=(Revenue - Cost of Goods Sold) / Revenue
=(197830 - 123702) / 197830
=37.47 %

* 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.


Fanuc  (TSE:6954) 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

Fanuc had a gross margin of 37.47% 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.


Fanuc Gross Margin % Related Terms

Thank you for viewing the detailed overview of Fanuc's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Fanuc (TSE:6954) Business Description

Traded in Other Exchanges
Address
3580, Shibokusa, Oshino-mura, Minamitsuru-gun, Yamanashi, JPN, 401-0597
Fanuc provides factory automation products, such as industrial robots, computerized numerical control systems, and compact machining centers (Robodrills) globally. The company had its beginnings as part of Fujitsu developing early numerical control systems and now commands the top global market share with its CNC systems and industrial robots.

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