Gross Margin % is calculated as gross profit divided by its revenue. ResMed's Gross Profit for the
three
months ended in Dec. 2023 was $647 Mil. ResMed's Revenue for the
three
months ended in Dec. 2023 was $1,163 Mil. Therefore, ResMed's Gross Margin % for the quarter that ended in Dec. 2023 was 55.64%.
The historical rank and industry rank for ResMed's Gross Margin % or its related term are showing as below:
RMD'
s Gross Margin % Range Over the Past 10 Years
Min: 55.11 Med: 57.43 Max: 63.65
Current: 55.11
During the past 13 years, the highestGross Margin % of ResMed was 63.65%. The lowest was 55.11%. And the median was 57.43%.
RMD's Gross Margin % is ranked better than 52.01% of 796
companies
in the Medical Devices & Instruments industry
Industry Median: 53.54
vs RMD: 55.11
ResMed had a gross margin of 55.64% for the quarter that ended in Dec. 2023 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for ResMed was -0.50% per year.
ResMed Gross Margin % Historical Data
The historical data trend for ResMed'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.
For the Medical Instruments & Supplies subindustry, ResMed'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.
ResMed's Gross Margin % Distribution in the Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, ResMed's Gross Margin % distribution charts can be found below:
* The bar in red indicates where ResMed'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.
ResMed (NYSE:RMD) 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
ResMed had a gross margin of 55.64% 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.
ResMed Gross Margin % Related Terms
Thank you for viewing the detailed overview of ResMed's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
ResMed is one of the largest respiratory care device companies globally, primarily developing and supplying flow generators, masks and accessories for the treatment of sleep apnea. Increasing diagnosis of sleep apnea combined with ageing populations and increasing prevalence of obesity is resulting in a structurally growing market. The company earns roughly two thirds of its revenue in the Americas and the balance across other regions dominated by Europe, Japan and Australia. Recent developments and acquisitions have focused on digital health as ResMed is aiming to differentiate itself through the provision of clinical data for use by the patient, medical care advisor and payer in the out-of-hospital setting.
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