Gross Margin % is calculated as gross profit divided by its revenue. Ensign Group's Gross Profit for the
three
months ended in Dec. 2023 was $149 Mil. Ensign Group's Revenue for the
three
months ended in Dec. 2023 was $980 Mil. Therefore, Ensign Group's Gross Margin % for the quarter that ended in Dec. 2023 was 15.16%.
The historical rank and industry rank for Ensign Group's Gross Margin % or its related term are showing as below:
ENSG'
s Gross Margin % Range Over the Past 10 Years
Min: 10.82 Med: 14.75 Max: 17.82
Current: 15.84
During the past 13 years, the highestGross Margin % of Ensign Group was 17.82%. The lowest was 10.82%. And the median was 14.75%.
ENSG's Gross Margin % is ranked worse than 87.48% of 607
companies
in the Healthcare Providers & Services industry
Industry Median: 41.24
vs ENSG: 15.84
Ensign Group had a gross margin of 15.16% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Ensign Group was 5.30% per year.
Ensign Group Gross Margin % Historical Data
The historical data trend for Ensign Group'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, Ensign Group'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.
Ensign Group Gross Margin % Distribution
For the Healthcare Providers & Services industry and Healthcare sector, Ensign Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Ensign Group'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.
Ensign Group (NAS:ENSG) 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
Ensign Group had a gross margin of 15.16% for the quarter that ended in Dec. 2023 => No sustainable 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.
Ensign Group Gross Margin % Related Terms
Thank you for viewing the detailed overview of Ensign Group's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Ensign Group Inc provides post-acute healthcare services in the United States. Its regional subsidiaries oversee skilled nursing, assisted living, home health and hospice, mobile ancillary, and urgent care operations. Medicare and Medicaid programs contribute a majority of revenue received for Ensign's services. The firm operates through two segments, Skilled services, and Standard Bearer. The skilled services segment includes the operation of skilled nursing facilities and rehabilitation therapy services. The real estate segment comprises of properties owned by the company and leased to skilled nursing and assisted living operations. The majority of the revenue is generated from the services segment.
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