Gross Margin % is calculated as gross profit divided by its revenue. OPKO Health's Gross Profit for the
three
months ended in Dec. 2023 was $44.7 Mil. OPKO Health's Revenue for the
three
months ended in Dec. 2023 was $181.9 Mil. Therefore, OPKO Health's Gross Margin % for the quarter that ended in Dec. 2023 was 24.58%.
Warning Sign:
OPKO Health Inc gross margin has been in long-term decline. The average rate of decline per year is -3.2%.
The historical rank and industry rank for OPKO Health's Gross Margin % or its related term are showing as below:
OPK'
s Gross Margin % Range Over the Past 10 Years
Min: 28.7 Med: 37.27 Max: 52.16
Current: 36.84
During the past 13 years, the highestGross Margin % of OPKO Health was 52.16%. The lowest was 28.70%. And the median was 37.27%.
OPK's Gross Margin % is ranked worse than 64.81% of 216
companies
in the Medical Diagnostics & Research industry
Industry Median: 45.595
vs OPK: 36.84
OPKO Health had a gross margin of 24.58% for the quarter that ended in Dec. 2023 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for OPKO Health was -3.20% per year.
OPKO Health Gross Margin % Historical Data
The historical data trend for OPKO Health'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 OPKO Health's Gross Margin %
For the Diagnostics & Research subindustry, OPKO Health'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.
OPKO Health's Gross Margin % Distribution in the Medical Diagnostics & Research Industry
For the Medical Diagnostics & Research industry and Healthcare sector, OPKO Health's Gross Margin % distribution charts can be found below:
* The bar in red indicates where OPKO Health'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.
OPKO Health (NAS:OPK) 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
OPKO Health had a gross margin of 24.58% for the quarter that ended in Dec. 2023 => Competition eroding margins
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.
OPKO Health Gross Margin % Related Terms
Thank you for viewing the detailed overview of OPKO Health's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
OPKO Health Inc is a diversified biotechnology company that operates pharmaceutical and diagnostic development programs. Opko's diagnostics business includes a core genetic testing operation. It has a development and commercial supply pharmaceutical company, as well as a global supply-chain operation and holding company in Ireland. Opko also owns a speciality active pharmaceutical ingredients manufacturer in Israel. The company's bio-reference testing business consists of routine testing and esoteric testing. Routine tests measure various health parameters, such as the functions of the heart, kidney, liver, thyroid, and other organs.
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