Gross Margin % is calculated as gross profit divided by its revenue. LivaNova's Gross Profit for the
three
months ended in Mar. 2024 was $207 Mil. LivaNova's Revenue for the
three
months ended in Mar. 2024 was $295 Mil. Therefore, LivaNova's Gross Margin % for the quarter that ended in Mar. 2024 was 70.32%.
The historical rank and industry rank for LivaNova's Gross Margin % or its related term are showing as below:
LIVN'
s Gross Margin % Range Over the Past 10 Years
Min: 57.99 Med: 66.81 Max: 90.63
Current: 67.89
During the past 13 years, the highestGross Margin % of LivaNova was 90.63%. The lowest was 57.99%. And the median was 66.81%.
LIVN's Gross Margin % is ranked better than 73.87% of 796
companies
in the Medical Devices & Instruments industry
Industry Median: 53.335
vs LIVN: 67.89
LivaNova had a gross margin of 70.32% for the quarter that ended in Mar. 2024 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for LivaNova was 0.60% per year.
LivaNova Gross Margin % Historical Data
The historical data trend for LivaNova'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 LivaNova's Gross Margin %
For the Medical Devices subindustry, LivaNova'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.
LivaNova's Gross Margin % Distribution in the Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, LivaNova's Gross Margin % distribution charts can be found below:
* The bar in red indicates where LivaNova'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.
LivaNova (NAS:LIVN) 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
LivaNova had a gross margin of 70.32% for the quarter that ended in Mar. 2024 => 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.
LivaNova Gross Margin % Related Terms
Thank you for viewing the detailed overview of LivaNova's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
U.K.-based LivaNova was born of a combination between Cyberonics in the U.S. and Sorin in Italy. The medical device firm is primarily focused on cardiovascular and cardiopulmonary solutions (with surgical heart valves, heart-lung machines, and oxygenation equipment) as well as neuromodulation devices for treatment-resistant epilepsy and depression. Following the merger, LivaNova divested its cardiac rhythm management and heart valve businesses. LivaNova derives roughly half of its revenue from the U.S. market, another 21% from Europe, and the remainder from the rest of the world.
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