The historical rank and industry rank for Recordati SpA's Gross Margin % or its related term are showing as below:
RCDTF'
s Gross Margin % Range Over the Past 10 Years
Min: 66.88 Med: 69.86 Max: 72.93
Current: 67.82
During the past 13 years, the highestGross Margin % of Recordati SpA was 72.93%. The lowest was 66.88%. And the median was 69.86%.
RCDTF's Gross Margin % is ranked better than 82.35% of 986
companies
in the Drug Manufacturers industry
Industry Median: 46.375
vs RCDTF: 67.82
Recordati SpA had a gross margin of 67.84% for the quarter that ended in Dec. 2023 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Recordati SpA was -0.60% per year.
Recordati SpA Gross Margin % Historical Data
The historical data trend for Recordati SpA'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 Recordati SpA's Gross Margin %
For the Drug Manufacturers - General subindustry, Recordati SpA'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.
Recordati SpA's Gross Margin % Distribution in the Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Recordati SpA's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Recordati SpA'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.
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
Recordati SpA had a gross margin of 67.84% 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.
Recordati SpA Gross Margin % Related Terms
Thank you for viewing the detailed overview of Recordati SpA's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Recordati SpA (Recordati SpA) Business Description
Recordati SpA is a drug manufacturing company that focuses on specialty pharmaceuticals. The company produces and promotes medicines globally that focus on primary-care therapies and rare diseases. Recordati uses strategic partnerships as part of its long-term growth. The vast majority of the company's revenue is generated in Italy, followed by the United States, France, and Germany. Recordati reports two operating segments: Specialty and Primary care and Rare diseases. The bulk of the company's profit is derived from its specialty and primary care segment, which includes the production of active ingredients.
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