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NextGen Healthcare (NextGen Healthcare) Gross Margin % : 46.27% (As of Sep. 2023)


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What is NextGen Healthcare Gross Margin %?

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:

NXGN' s Gross Margin % Range Over the Past 10 Years
Min: 46.4   Med: 51.96   Max: 56.22
Current: 46.4


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%.

NXGN's Gross Margin % is not ranked
in the Healthcare Providers & Services industry.
Industry Median: 41.24 vs NXGN: 46.40

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.


NextGen Healthcare Gross Margin % Historical Data

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.

* Premium members only.

NextGen Healthcare Gross Margin % Chart

NextGen Healthcare Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 48.21 47.28 47.34 44.79 46.27

Competitive Comparison of NextGen Healthcare's Gross Margin %

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.


NextGen Healthcare's Gross Margin % Distribution in the Healthcare Providers & Services Industry

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.



NextGen Healthcare Gross Margin % Calculation

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.


NextGen Healthcare Gross Margin % Related Terms

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.


NextGen Healthcare (NextGen Healthcare) Business Description

Traded in Other Exchanges
N/A
Address
3525 Piedmont Road, NE Building 6, Suite 700, Atlanta, GA, USA, 30305
NextGen Healthcare Inc is a United States-based company that provides healthcare solutions. The company offers technology and services platform supports for ambulatory and specialty practices of all sizes. It provides software, services, and analytics solutions to medical and dental group practices.
Executives
Three Prong Investments, Llc 10 percent owner 1695 VIKING RD, LAGUNA BEACH CA 92651
David A Metcalfe officer: Chief Technology Officer 3525 PIEDMONT RD., NE, BUILDING 6, SUITE 700, ATLANTA GA 30305
Mitchell Waters officer: EVP, Commercial Growth 3525 PIEDMONT RD., NE, BUILDING 6, SUITE 700, ATLANTA GA 30305
Craig A. Barbarosh director 3525 PIEDMONT RD., NE, BUILDING 6, SUITE 700, ATLANTA GA 30305
David Ahmadzai officer: Chief Accounting Officer 3525 PIEDMONT RD., NE, BUILDING 6, SUITE 700, ATLANTA GA 30305
Donna Cullen Greene officer: EVP, Human Resources 3525 PIEDMONT RD., NE, BUILDING 6, SUITE 700, ATLANTA GA 30305
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
Pamela Puryear director 253 DOLPHIN COVE QUAY, STAMFORD CT 06902
Geraldine Mcginty director 3525 PIEDMONT RD., NE, BUILDING 6, SUITE 700, ATLANTA GA 30305
Lonnie Allen Plunk officer: EVP, Operations 3525 PIEDMONT RD., NE, BUILDING 6, SUITE 700, ATLANTA GA 30305
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