Gross Margin % is calculated as gross profit divided by its revenue. Acadia Healthcare Co's Gross Profit for the
three
months ended in Dec. 2023 was $716 Mil. Acadia Healthcare Co's Revenue for the
three
months ended in Dec. 2023 was $743 Mil. Therefore, Acadia Healthcare Co's Gross Margin % for the quarter that ended in Dec. 2023 was 96.41%.
The historical rank and industry rank for Acadia Healthcare Co's Gross Margin % or its related term are showing as below:
ACHC'
s Gross Margin % Range Over the Past 10 Years
Min: 95.18 Med: 95.83 Max: 96.38
Current: 96.38
During the past 13 years, the highestGross Margin % of Acadia Healthcare Co was 96.38%. The lowest was 95.18%. And the median was 95.83%.
ACHC's Gross Margin % is ranked better than 97.36% of 606
companies
in the Healthcare Providers & Services industry
Industry Median: 41.465
vs ACHC: 96.38
Acadia Healthcare Co had a gross margin of 96.41% for the quarter that ended in Dec. 2023 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Acadia Healthcare Co was 0.10% per year.
Acadia Healthcare Co Gross Margin % Historical Data
The historical data trend for Acadia Healthcare 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.
For the Medical Care Facilities subindustry, Acadia Healthcare 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.
Acadia Healthcare Co Gross Margin % Distribution
For the Healthcare Providers & Services industry and Healthcare sector, Acadia Healthcare Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Acadia Healthcare Co'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.
Acadia Healthcare Co (NAS:ACHC) 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
Acadia Healthcare Co had a gross margin of 96.41% 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.
Acadia Healthcare Co Gross Margin % Related Terms
Thank you for viewing the detailed overview of Acadia Healthcare Co's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Acadia Healthcare Co (Acadia Healthcare Co) Business Description
Acadia Healthcare Co Inc acquires and develops behavioral healthcare facilities in the United States, United Kingdom, and Puerto Rico. Acute inpatient psychiatric facilities and specialty treatment facilities contribute the vast majority of Acadia's revenue in the United States. The U.S. facilities receive the largest proportion of payments from Medicaid, with the second-largest proportion from commercial payors. In the United Kingdom, the majority of Acadia's revenue comes from its healthcare facilities, and virtually all of the payment received is from the National Health Service.
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