Healthcare Services Group (Healthcare Services Group) Gross Margin %

: 17.33% (As of Dec. 2023)

View and export this data going back to 1983. Start your Free Trial

Gross Margin % is calculated as gross profit divided by its revenue. Healthcare Services Group's Gross Profit for the three months ended in Dec. 2023 was $73 Mil. Healthcare Services Group's Revenue for the three months ended in Dec. 2023 was $424 Mil. Therefore, Healthcare Services Group's Gross Margin % for the quarter that ended in Dec. 2023 was 17.33%.

The historical rank and industry rank for Healthcare Services Group's Gross Margin % or its related term are showing as below:

HCSG' s Gross Margin % Range Over the Past 10 Years
Min: 10.66 Med: 13.16 Max: 15.22
Current: 12.85

During the past 13 years, the highest Gross Margin % of Healthcare Services Group was 15.22%. The lowest was 10.66%. And the median was 13.16%.

HCSG's Gross Margin % is ranked worse than
91.6% of 607 companies
in the Healthcare Providers & Services industry
Industry Median: 41.4 vs HCSG: 12.85

Healthcare Services Group had a gross margin of 17.33% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Healthcare Services Group was 0.40% per year.

Healthcare Services Group Gross Margin % Historical Data

The historical data trend for Healthcare Services 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.

* Premium members only.

Healthcare Services Group Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

12.38

15.22

14.04

11.44

12.85

Healthcare Services Group Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Gross Margin %																13.37	13.48	12.22	8.22	17.33

Competitive Comparison

For the Medical Care Facilities subindustry, Healthcare Services 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.

Healthcare Services Group Gross Margin % Distribution

For the Healthcare Providers & Services industry and Healthcare sector, Healthcare Services Group's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Healthcare Services Group's Gross Margin % falls into.

Healthcare Services Group Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Healthcare Services Group's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )	=	Gross Profit (A: Dec. 2023 )	/	Revenue (A: Dec. 2023 )
	=	214.7	/	1671.389
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(1671.389 - 1456.643)	/	1671.389
	=	12.85 %

Healthcare Services Group's Gross Margin for the quarter that ended in Dec. 2023 is calculated as

Gross Margin % (Q: Dec. 2023 )	=	Gross Profit (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	73.5	/	423.84
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(423.84 - 350.383)	/	423.84
	=	17.33 %

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.

Healthcare Services Group (NAS:HCSG) 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

Healthcare Services Group had a gross margin of 17.33% 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.

Healthcare Services Group Gross Margin % Related Terms

Thank you for viewing the detailed overview of Healthcare Services Group's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.

Healthcare Services Group (Healthcare Services Group) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Healthcare Providers & Services » Healthcare Services Group Inc (NAS:HCSG) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

3220 Tillman Drive, Suite 300, Bensalem, PA, USA, 19020

Website

https://www.hcsg.com

Healthcare Services Group Inc is a provider of housekeeping and facility management services to the healthcare industry. The company operates two business segments, both contributing roughly equally to the company's revenue: Housekeeping, laundry, linen, and other services; and Dietary department services. Housekeeping includes management of clients' housekeeping departments, cleaning, disinfecting and sanitizing, laundry, bed linen, and uniform services. Dietary consists of food purchasing, meal preparation, and providing dietitian consulting services. Its clients are nursing homes, retirement complexes, rehabilitation centers, and hospitals in the United States of America.

Executives

Kurt Jr Simmons	director	3220 TILLMAN DRIVE, BENSALEM PA 19020
Andrew M Brophy	officer: Acting Accounting Officer	3220 TILLMAN DRIVE, SUITE 300, BENSALEM PA 19020
John Briggs	director	3220 TILLMAN DRIVE SUITE 300, BENSALEM PA 19020
Patrick J Orr	officer: EVP & Chief Revenue Officer	3220 TILLMAN DRIVE, SUITE 300, BENSALEM PA 19020
Andrew Kush	officer: Executive Vice President	3220 TILLMAN DRIVE, SUITE 300, BENSALEM PA 19020
Dino D Ottaviano	director	3220 TILLMAN DRIVE, SUITE 300, BENSALEM PA 19020
Michael E Mcbryan	director, officer: Executive Vice President	3220 TILLMAN DRIVE, SUITE 300, BENSALEM PA 19020
Robert L Frome	director	3220 TILLMAN DRIVE SUITE 300, BENSALEM PA 19020
Laura K Grant	director	3220 TILLMAN, DRIVE, BENSALEM PA 19020
Robert J Moss	director	3220 TILLMAN DRIVE SUITE 300, BENSALEM PA 19020
Daniela Castagnino	director	3220 TILLMAN DRIVE, SUITE 300, BENSALEM PA 19020
Diane S Casey	director	3220 TILLMAN DRIVE, SUITE 300, BENSALEM PA 19020
John Christopher Shea	officer: Chief Financial Officer	3220 TILLMAN DRIVE, SUITE 300, BENSALEM PA 19020
David Hurlock	officer: Executive Vice President & COO	3220 TILLMAN DRIVE, SUITE 300, BENSALEM PA 19020
Daniel P Mccartney	director, officer: Chief Executive Officer	3220 TILLMAN DR, SUITE 300, BENSALEM PA 19020