Gross Margin % is calculated as gross profit divided by its revenue. Atrion's Gross Profit for the
three
months ended in Dec. 2023 was $16.3 Mil. Atrion's Revenue for the
three
months ended in Dec. 2023 was $43.6 Mil. Therefore, Atrion's Gross Margin % for the quarter that ended in Dec. 2023 was 37.44%.
Warning Sign:
Atrion Corp gross margin has been in long-term decline. The average rate of decline per year is -4.4%.
The historical rank and industry rank for Atrion's Gross Margin % or its related term are showing as below:
ATRI'
s Gross Margin % Range Over the Past 10 Years
Min: 36.84 Med: 46.34 Max: 48.71
Current: 36.85
During the past 13 years, the highestGross Margin % of Atrion was 48.71%. The lowest was 36.84%. And the median was 46.34%.
ATRI's Gross Margin % is ranked worse than 71.73% of 796
companies
in the Medical Devices & Instruments industry
Industry Median: 53.54
vs ATRI: 36.85
Atrion had a gross margin of 37.44% for the quarter that ended in Dec. 2023 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Atrion was -4.40% per year.
Atrion Gross Margin % Historical Data
The historical data trend for Atrion'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 Instruments & Supplies subindustry, Atrion'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.
Atrion's Gross Margin % Distribution in the Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Atrion's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Atrion'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.
Atrion (NAS:ATRI) 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
Atrion had a gross margin of 37.44% for the quarter that ended in Dec. 2023 => 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.
Atrion Gross Margin % Related Terms
Thank you for viewing the detailed overview of Atrion's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Atrion Corp develops and manufactures products for medical applications. Its fluid-delivery products contribute the largest proportion of revenue and include valves that can hold and release controlled amounts of fluids or gases and are often used in anesthesia and oncology applications. Atrion's cardiovascular products include the MPS2 Myocardial Protection System, which delivers fluids and medications, mixes drugs, and controls temperature and pressure during open-heart surgery. The cardiovascular business also sells cardiac-surgery vacuum relief valves, inflation devices, and other products used in heart surgery. The firm's ophthalmic products include medical devices that disinfect contact lenses. Atrion generates the majority of revenue in the United States.
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