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Rockwell Medical (Rockwell Medical) Gross Margin %

: 12.99% (As of Dec. 2023)
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Gross Margin % is calculated as gross profit divided by its revenue. Rockwell Medical's Gross Profit for the three months ended in Dec. 2023 was $2.87 Mil. Rockwell Medical's Revenue for the three months ended in Dec. 2023 was $22.09 Mil. Therefore, Rockwell Medical's Gross Margin % for the quarter that ended in Dec. 2023 was 12.99%.


The historical rank and industry rank for Rockwell Medical's Gross Margin % or its related term are showing as below:

RMTI' s Gross Margin % Range Over the Past 10 Years
Min: -3.91   Med: 6.03   Max: 16.15
Current: 10.41


During the past 13 years, the highest Gross Margin % of Rockwell Medical was 16.15%. The lowest was -3.91%. And the median was 6.03%.

RMTI's Gross Margin % is ranked worse than
92.33% of 991 companies
in the Drug Manufacturers industry
Industry Median: 46.83 vs RMTI: 10.41

Rockwell Medical had a gross margin of 12.99% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Rockwell Medical was 0.00% per year.


Rockwell Medical Gross Margin % Historical Data

The historical data trend for Rockwell Medical'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.

Array ( [0] => - [1] => - [2] => - [3] => - [4] => - [5] => 4.63 [6] => 4.38 [7] => -3.91 [8] => 5.60 [9] => 10.41 )
Rockwell Medical Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.63 4.38 -3.91 5.60 10.41

Rockwell Medical Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Gross Margin % 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 Premium Member Only Premium Member Only Premium Member Only 12.12 13.21 5.71 9.26 12.99

Competitive Comparison

For the Drug Manufacturers - Specialty & Generic subindustry, Rockwell Medical'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.


Rockwell Medical Gross Margin % Distribution

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

* The bar in red indicates where Rockwell Medical's Gross Margin % falls into.



Rockwell Medical Gross Margin % Calculation

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

Rockwell Medical's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )=Gross Profit (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=8.7 / 83.612
=(Revenue - Cost of Goods Sold) / Revenue
=(83.612 - 74.908) / 83.612
=10.41 %

Rockwell Medical's Gross Margin for the quarter that ended in Dec. 2023 is calculated as


Gross Margin % (Q: Dec. 2023 )=Gross Profit (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=2.9 / 22.093
=(Revenue - Cost of Goods Sold) / Revenue
=(22.093 - 19.223) / 22.093
=12.99 %

* 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.


Rockwell Medical  (NAS:RMTI) 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

Rockwell Medical had a gross margin of 12.99% for the quarter that ended in Dec. 2023 => No sustainable 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.


Rockwell Medical Gross Margin % Related Terms

Thank you for viewing the detailed overview of Rockwell Medical's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Rockwell Medical (Rockwell Medical) Business Description

Traded in Other Exchanges
Address
30142 S. Wixom Road, Wixom, MI, USA, 48393
Rockwell Medical Inc is a healthcare company that develops, manufactures, commercializes, and distributes a portfolio of hemodialysis products for dialysis providers. Rockwell Medical's mission is to provide dialysis clinics and patients with the highest quality products supported by the best customer service in the industry. It is focused on innovative, long-term growth strategies that enhance products, processes, and people, enabling the company to deliver exceptional value to the healthcare system and provide a positive impact on the lives of hemodialysis patients.
Executives
Jesse Neri officer: SVP, FINANCE 851 DUPORTAIL ROAD, SECOND FLOOR, CHESTERBROOK PA 19087
Joan Lau director C/O RENOVACOR, INC., 5 MEAD POINT DRIVE, GREENWICH CT 06830
Russell Skibsted officer: See Remarks 15 TRANQUILITY PLACE, LADERA RANCH CA 92694
Megan C. Timmins officer: SVP, General Counsel 600 LEE ROAD, SUITE 100, WAYNE PA 19087
Mark Strobeck director, officer: President and CEO 460 EAST SWEDESFORD ROAD, SUITE 1050, WAYNE PA 19087
Allen Nissenson director 601 HAWAII ST., EL SEGUNDO CA 90245
Robert S Radie director 101 LINDENWOOD DRIVE, SUITE 225, MALVERN PA 19355
Andrea Heslin Smiley director 600 LEE ROAD, SUITE 100, WAYNE PA 19087
David S. Richmond 10 percent owner, other: See Footnote 1 3568 WILDWOOD AVENUE, JACKSON MI 49202
Russell H Ellison director 270 RIVERSIDE DR., APT. 12D, NEW YORK NY 10025
Marc L Hoffman officer: Chief Medical Officer 30142 WIXOM ROAD, WIXOM MI 48393
John Peter Mclaughlin director C/O PDL BIOPHARMA, INC., 932 SOUTHWOOD BOULEVARD, INCLINE VILLAGE NV 89451
Richmond Brothers, Inc. 10 percent owner, other: See Footnote 1 7415 FOXWORTH COURT, JACKSON MI 49201
Stuart M Paul director, officer: Chief Executive Officer HOME DIAGNOSTICS, INC., 2400 NW 55TH COURT, FORT LAUDERDALE FL 33309
Angus W. Smith officer: Chief Financial Officer C/O PERNIX THERAPEUTICS HOLDINGS, INC., 10 NORTH PARK PLACE, SUITE 201, MORRISTOWN NJ 07960