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Capcom Co (TSE:9697) Gross Margin %

: 64.64% (As of Dec. 2023)
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Gross Margin % is calculated as gross profit divided by its revenue. Capcom Co's Gross Profit for the three months ended in Dec. 2023 was 円20,196 Mil. Capcom Co's Revenue for the three months ended in Dec. 2023 was 円31,245 Mil. Therefore, Capcom Co's Gross Margin % for the quarter that ended in Dec. 2023 was 64.64%.


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

TSE:9697' s Gross Margin % Range Over the Past 10 Years
Min: 29.37   Med: 39.56   Max: 60.32
Current: 60.32


During the past 13 years, the highest Gross Margin % of Capcom Co was 60.32%. The lowest was 29.37%. And the median was 39.56%.

TSE:9697's Gross Margin % is ranked worse than
50.58% of 520 companies
in the Interactive Media industry
Industry Median: 60.895 vs TSE:9697: 60.32

Capcom Co had a gross margin of 64.64% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Capcom Co was 11.00% per year.


Capcom Co Gross Margin % Historical Data

The historical data trend for Capcom 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.

Capcom Co Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Gross Margin %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 37.21 50.19 55.34 55.72 58.62

Capcom 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 54.61 55.97 69.02 50.15 64.64

Competitive Comparison

For the Electronic Gaming & Multimedia subindustry, Capcom 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.


Capcom Co Gross Margin % Distribution

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

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



Capcom Co Gross Margin % Calculation

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

Capcom Co's Gross Margin for the fiscal year that ended in Mar. 2023 is calculated as

Gross Margin % (A: Mar. 2023 )=Gross Profit (A: Mar. 2023 ) / Revenue (A: Mar. 2023 )
=73819 / 125930
=(Revenue - Cost of Goods Sold) / Revenue
=(125930 - 52111) / 125930
=58.62 %

Capcom 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 )
=20196 / 31245
=(Revenue - Cost of Goods Sold) / Revenue
=(31245 - 11049) / 31245
=64.64 %

* 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.


Capcom Co  (TSE:9697) 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

Capcom Co had a gross margin of 64.64% 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.


Capcom Co Gross Margin % Related Terms

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Capcom Co (TSE:9697) Business Description

Traded in Other Exchanges
Address
3-1-3 Uchihirano-machi, Chuo-ku, Osaka-shi, Osaka, JPN, 540-0037
Capcom Co Ltd is a Japanese company that produces and sells videogame software, online games, mobile games, and operates amusement facilities. The company has operations in Japan, North America, Europe, Asia, and emerging markets. The majority of its revenue is split fairly evenly between Japan, Asia, North America, and Europe. Capcom's segments include Digital Contents, which sells mobile and PC games; Arcade Operations, which operates Plaza Capcom amusement facilities; Amusement Equipment, which sells frames and LCD devices for gaming machines and software; and Other Businesses. The company derives the vast majority of its revenue from its Digital Contents segment. Some of the firm's notable games include Resident Evil, Street Fighter, Monster Hunter, and Mega Man.

Capcom Co (TSE:9697) Headlines

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