The historical rank and industry rank for New Horizon Health's Gross Margin % or its related term are showing as below:
HKSE:06606'
s Gross Margin % Range Over the Past 10 Years
Min: 20.41 Med: 58.89 Max: 88.71
Current: 88.71
During the past 5 years, the highestGross Margin % of New Horizon Health was 88.71%. The lowest was 20.41%. And the median was 58.89%.
HKSE:06606's Gross Margin % is not ranked
in the Medical Devices & Instruments industry.
Industry Median: 52.83
vs HKSE:06606: 88.71
New Horizon Health had a gross margin of 90.86% for the quarter that ended in Jun. 2023 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for New Horizon Health was 0.00% per year.
New Horizon Health Gross Margin % Historical Data
The historical data trend for New Horizon Health'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 New Horizon Health's Gross Margin %
For the Medical Devices subindustry, New Horizon Health'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.
New Horizon Health's Gross Margin % Distribution in the Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, New Horizon Health's Gross Margin % distribution charts can be found below:
* The bar in red indicates where New Horizon Health'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.
New Horizon Health (HKSE:06606) 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
New Horizon Health had a gross margin of 90.86% for the quarter that ended in Jun. 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.
New Horizon Health Gross Margin % Related Terms
Thank you for viewing the detailed overview of New Horizon Health's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
New Horizon Health (HKSE:06606) Business Description
New Horizon Health Ltd is engaged in early cancer screening and in-home testing in China. The company has an early detection and cancer screening-focused pipeline of five products and product candidates with an emphasis on colorectal cancer screening. The company focuses on cancer prevention and cure through screening and early detection. It generates maximum revenue from ColoClear and Pupu Tube products.
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