Gross Margin % is calculated as gross profit divided by its revenue. InfuSystems Holdings's Gross Profit for the
three
months ended in Dec. 2023 was $14.9 Mil. InfuSystems Holdings's Revenue for the
three
months ended in Dec. 2023 was $31.8 Mil. Therefore, InfuSystems Holdings's Gross Margin % for the quarter that ended in Dec. 2023 was 46.84%.
Warning Sign:
InfuSystems Holdings Inc gross margin has been in long-term decline. The average rate of decline per year is -2.8%.
The historical rank and industry rank for InfuSystems Holdings's Gross Margin % or its related term are showing as below:
INFU'
s Gross Margin % Range Over the Past 10 Years
Min: 50.17 Med: 59.64 Max: 71.22
Current: 50.17
During the past 13 years, the highestGross Margin % of InfuSystems Holdings was 71.22%. The lowest was 50.17%. And the median was 59.64%.
INFU's Gross Margin % is ranked worse than 56.03% of 796
companies
in the Medical Devices & Instruments industry
Industry Median: 53.54
vs INFU: 50.17
InfuSystems Holdings had a gross margin of 46.84% for the quarter that ended in Dec. 2023 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for InfuSystems Holdings was -2.80% per year.
InfuSystems Holdings Gross Margin % Historical Data
The historical data trend for InfuSystems 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 InfuSystems Holdings's Gross Margin %
For the Medical Instruments & Supplies subindustry, InfuSystems 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.
InfuSystems Holdings's Gross Margin % Distribution in the Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, InfuSystems Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where InfuSystems 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
InfuSystems Holdings had a gross margin of 46.84% 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.
InfuSystems Holdings Gross Margin % Related Terms
Thank you for viewing the detailed overview of InfuSystems Holdings's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
InfuSystems Holdings (InfuSystems Holdings) Business Description
InfuSystems Holdings Inc is a United States based healthcare service provider. It offers Infusion pumps and related products and services for patients in the home, oncology clinics, ambulatory surgery centers, and other sites of care from the locations in the United States and Canada. The company provides products and services to hospitals, oncology practices and chemotherapy clinics for the treatment of various cancers, including colorectal cancer, pain management, and other disease states. The segments of the company are Integrated Therapy Services (ITS) and Durable Medical Equipment (DME) services, of which key revenue is derived from the ITS segment.
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