Merus Labs International (Merus Labs International) Gross Margin % : 62.80% (As of Mar. 2017)

Merus Labs International Gross Margin % Chart

Merus Labs International Annual Data
	Trend	Sep07	Sep08	Sep09	Sep10	Sep11	Sep12	Sep13	Sep14	Sep15	Sep16
Gross Margin %		Get a 7-Day Free Trial					90.64	91.37	82.82	84.61	67.13

Merus Labs International Quarterly Data
	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17
Gross Margin %	Get a 7-Day Free Trial															69.15	65.62	63.66	68.85	62.80

Competitive Comparison of Merus Labs International's Gross Margin %

For the Drug Manufacturers - Specialty & Generic subindustry, Merus Labs International'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.

Merus Labs International's Gross Margin % Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Merus Labs International's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Merus Labs International's Gross Margin % falls into.

Merus Labs International Gross Margin % Calculation

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

Merus Labs International's Gross Margin for the fiscal year that ended in Sep. 2016 is calculated as

Merus Labs International's Gross Margin for the quarter that ended in Mar. 2017 is calculated as

* 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.

Merus Labs International  (NAS:MSLI) 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

Merus Labs International had a gross margin of 62.80% for the quarter that ended in Mar. 2017 => 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.

Merus Labs International Gross Margin % Related Terms

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Merus Labs International (Merus Labs International) Business Description