Gross Margin % is calculated as gross profit divided by its revenue. Alphatec Holdings's Gross Profit for the
three
months ended in Dec. 2023 was $95.2 Mil. Alphatec Holdings's Revenue for the
three
months ended in Dec. 2023 was $138.0 Mil. Therefore, Alphatec Holdings's Gross Margin % for the quarter that ended in Dec. 2023 was 68.99%.
Warning Sign:
Alphatec Holdings Inc gross margin has been in long-term decline. The average rate of decline per year is -1.5%.
The historical rank and industry rank for Alphatec Holdings's Gross Margin % or its related term are showing as below:
ATEC'
s Gross Margin % Range Over the Past 10 Years
Min: 63.31 Med: 66.74 Max: 70.92
Current: 64.32
During the past 13 years, the highestGross Margin % of Alphatec Holdings was 70.92%. The lowest was 63.31%. And the median was 66.74%.
ATEC's Gross Margin % is ranked better than 67.96% of 796
companies
in the Medical Devices & Instruments industry
Industry Median: 53.54
vs ATEC: 64.32
Alphatec Holdings had a gross margin of 68.99% for the quarter that ended in Dec. 2023 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Alphatec Holdings was -1.50% per year.
Alphatec Holdings Gross Margin % Historical Data
The historical data trend for Alphatec Holdings'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 Alphatec Holdings's Gross Margin %
For the Medical Devices subindustry, Alphatec Holdings'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.
Alphatec Holdings's Gross Margin % Distribution in the Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Alphatec Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Alphatec Holdings'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
Alphatec Holdings had a gross margin of 68.99% 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.
Alphatec Holdings Gross Margin % Related Terms
Thank you for viewing the detailed overview of Alphatec Holdings's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Alphatec Holdings (Alphatec Holdings) Business Description
Alphatec Holdings Inc is a medical technology company focused on the design, development, and advancement of products for the surgical treatment of spinal disorders associated with disease and degeneration, congenital deformities, and trauma. The company's spine approach technologies include Posterior Cervical Fusion, Anterior Cervical Discectomy and Fusion, Lateral Interbody Fusion, and Posterior Lumbar Interbody Fusion among others.
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