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Gross Margin % is calculated as gross profit divided by its revenue. NextGen Healthcare's Gross Profit for the three months ended in Sep. 2023 was $81.6 Mil. NextGen Healthcare's Revenue for the three months ended in Sep. 2023 was $176.4 Mil. Therefore, NextGen Healthcare's Gross Margin % for the quarter that ended in Sep. 2023 was 46.27%.
Warning Sign:
NextGen Healthcare Inc gross margin has been in long-term decline. The average rate of decline per year is -2.4%.
The historical rank and industry rank for NextGen Healthcare's Gross Margin % or its related term are showing as below:
During the past 13 years, the highest Gross Margin % of NextGen Healthcare was 56.22%. The lowest was 46.40%. And the median was 51.96%.
NextGen Healthcare had a gross margin of 46.27% for the quarter that ended in Sep. 2023 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for NextGen Healthcare was -2.40% per year.
The historical data trend for NextGen Healthcare'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.
NextGen Healthcare Annual Data | |||||||||||||||||||||
Trend | Mar14 | Mar15 | Mar16 | Mar17 | Mar18 | Mar19 | Mar20 | Mar21 | Mar22 | Mar23 | |||||||||||
Gross Margin % | Get a 7-Day Free Trial | 53.38 | 50.50 | 50.54 | 50.46 | 47.64 |
NextGen Healthcare Quarterly Data | ||||||||||||||||||||
Dec18 | Mar19 | Jun19 | Sep19 | Dec19 | Mar20 | Jun20 | Sep20 | Dec20 | Mar21 | Jun21 | Sep21 | Dec21 | Mar22 | Jun22 | Sep22 | Dec22 | Mar23 | Jun23 | Sep23 | |
Gross Margin % | Get a 7-Day Free Trial | 48.21 | 47.28 | 47.34 | 44.79 | 46.27 |
For the Health Information Services subindustry, NextGen Healthcare'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.
For the Healthcare Providers & Services industry and Healthcare sector, NextGen Healthcare's Gross Margin % distribution charts can be found below:
* The bar in red indicates where NextGen Healthcare's Gross Margin % falls into.
Gross Margin is the percentage of Gross Profit out of sales or Revenue.
NextGen Healthcare's Gross Margin for the fiscal year that ended in Mar. 2023 is calculated as
Gross Margin % (A: Mar. 2023 ) | = | Gross Profit (A: Mar. 2023 ) | / | Revenue (A: Mar. 2023 ) |
= | 311.2 | / | 653.172 | |
= | (Revenue - Cost of Goods Sold) | / | Revenue | |
= | (653.172 - 342.013) | / | 653.172 | |
= | 47.64 % |
NextGen Healthcare's Gross Margin for the quarter that ended in Sep. 2023 is calculated as
Gross Margin % (Q: Sep. 2023 ) | = | Gross Profit (Q: Sep. 2023 ) | / | Revenue (Q: Sep. 2023 ) |
= | 81.6 | / | 176.418 | |
= | (Revenue - Cost of Goods Sold) | / | Revenue | |
= | (176.418 - 94.797) | / | 176.418 | |
= | 46.27 % |
* 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.
NextGen Healthcare (NAS:NXGN) 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
NextGen Healthcare had a gross margin of 46.27% for the quarter that ended in Sep. 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.
Thank you for viewing the detailed overview of NextGen Healthcare's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
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Srinivas S Velamoor | officer: EVP, Business Development | 3525 PIEDMONT RD., NE, BUILDING 6, SUITE 700, ATLANTA GA 30305 |
David William Sides | officer: President and CEO | 3525 PIEDMONT RD., NE, BUILDING 6, SUITE 700, ATLANTA GA 30305 |
Arnold James Robert Jr. | officer: Chief Financial Officer | 3525 PIEDMONT RD., NE, BUILDING 6, SUITE 700, ATLANTA GA 30305 |
Darnell Dent | director | 3525 PIEDMONT RD., NE, BUILDING 6, SUITE 700, ATLANTA GA 30305 |
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John R Frantz | officer: CEO and President | 3525 PIEDMONT RD., NE, BUILDING 6, SUITE 700, ATLANTA GA 30305 |
Lance Rosenzweig | director | 3525 PIEDMONT RD., NE, BUILDING 6, SUITE 700, ATLANTA GA 30305 |
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