ICU Medical Inc gross margin has been in long-term decline. The average rate of decline per year is -4.6%.
The historical rank and industry rank for ICU Medical's Gross Margin % or its related term are showing as below:
ICUI'
s Gross Margin % Range Over the Past 10 Years
Min: 30.6 Med: 37.31 Max: 53.09
Current: 32.48
During the past 13 years, the highestGross Margin % of ICU Medical was 53.09%. The lowest was 30.60%. And the median was 37.31%.
ICUI's Gross Margin % is ranked worse than 76.29% of 797
companies
in the Medical Devices & Instruments industry
Industry Median: 52.83
vs ICUI: 32.48
ICU Medical had a gross margin of 32.69% for the quarter that ended in Mar. 2024 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for ICU Medical was -4.60% per year.
ICU Medical Gross Margin % Historical Data
The historical data trend for ICU Medical'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.
Competitive Comparison of ICU Medical's Gross Margin %
For the Medical Instruments & Supplies subindustry, ICU Medical'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.
ICU Medical's Gross Margin % Distribution in the Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, ICU Medical's Gross Margin % distribution charts can be found below:
* The bar in red indicates where ICU Medical's Gross Margin % falls into.
* 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.
ICU Medical (NAS:ICUI) 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
ICU Medical had a gross margin of 32.69% for the quarter that ended in Mar. 2024 => 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.
ICU Medical Gross Margin % Related Terms
Thank you for viewing the detailed overview of ICU Medical's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
ICU Medical is a California-based, pure-play infusion therapy company that provides consumables, systems, and services for virtually every component of the IV continuum of care. ICU has become one of the largest players in its industry following its acquisition of Hospira Infusion Systems from Pfizer in 2017, and Smiths Medical from Smiths Group in 2022. It holds top-tier positions in its original reporting segments: infusion consumables (25% of 2022 revenue), IV solutions (16%), infusion systems (15%), and critical care (2%) as well as its new Smiths segments: Smiths infusion systems (15%), vascular access (14%), and vital care (12%). The combined entity remains primarily U.S. focused, generating over 64% of its sales domestically.
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