Shimano (WBO:SHM) Gross Margin % : 36.27% (As of Dec. 2023)

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What is Shimano Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Shimano's Gross Profit for the three months ended in Dec. 2023 was €229 Mil. Shimano's Revenue for the three months ended in Dec. 2023 was €631 Mil. Therefore, Shimano's Gross Margin % for the quarter that ended in Dec. 2023 was 36.27%.

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

WBO:SHM' s Gross Margin % Range Over the Past 10 Years
Min: 37.71 Med: 40.61 Max: 42.34
Current: 37.71

During the past 13 years, the highest Gross Margin % of Shimano was 42.34%. The lowest was 37.71%. And the median was 40.61%.

WBO:SHM's Gross Margin % is ranked worse than
57.39% of 765 companies
in the Travel & Leisure industry
Industry Median: 43.19 vs WBO:SHM: 37.71

Shimano had a gross margin of 36.27% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Shimano was 0.60% per year.

Shimano Gross Margin % Historical Data

The historical data trend for Shimano'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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Shimano Gross Margin % Chart

Shimano Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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38.71

40.49

42.34

42.24

38.48

Shimano 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															41.48	37.27	38.52	36.27	38.83

Competitive Comparison of Shimano's Gross Margin %

For the Leisure subindustry, Shimano'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.

Shimano's Gross Margin % Distribution in the Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, Shimano's Gross Margin % distribution charts can be found below:

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

Shimano Gross Margin % Calculation

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

Shimano'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 )
	=	1162.4	/	3021.152
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(3021.152 - 1858.737)	/	3021.152
	=	38.48 %

Shimano'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 )
	=	228.9	/	631.143
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(631.143 - 402.252)	/	631.143
	=	36.27 %

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.

Shimano (WBO:SHM) 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

Shimano had a gross margin of 36.27% 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.

Shimano Gross Margin % Related Terms

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Shimano (WBO:SHM) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Travel & Leisure » Shimano Inc (WBO:SHM) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

SMNNY:USA SHMDF:USA 7309:Japan SHM:Germany

Address

3-77 Oimatsu-cho, Sakai-ku, Sakai, Osaka Prefecture, JPN, 590-8577

Website

https://www.shimano.com

Shimano develops, manufactures, and distributes bicycle components, fishing tackles, rowing equipment, and lifestyle gear products, like apparel items, shoes, and bags. Approximately 80% of companywide sales comes from its bicycle components segment. Shimano has operations in Japan, Asia, Europe, North America, Latin America, and Oceania. The company was founded in 1921, and its headquarters are in Osaka, Japan.