Switch to:
Streamline Health Solutions, Inc. (NAS:STRM)
Gross Margin
53.43% (As of Oct. 2013)

Gross Margin is calculated as gross profit divided by its revenue. Streamline Health Solutions, Inc.'s gross profit for the three months ended in Oct. 2013 was $3.60 Mil. Streamline Health Solutions, Inc.'s revenue for the three months ended in Oct. 2013 was $6.73 Mil. Therefore, Streamline Health Solutions, Inc.'s Gross Margin for the quarter that ended in Oct. 2013 was 53.43%.

STRM' s 10-Year Gross Margin Range
Min: 24.42   Max: 63.76
Current: 51.22

24.42
63.76

During the past 13 years, the highest Gross Margin of Streamline Health Solutions, Inc. was 63.76%. The lowest was 24.42%. And the median was 49.64%.

STRM's Gross Marginis ranked lower than
100% of the Companies
in the Global Health Information Services industry.

( Industry Median: vs. STRM: 51.22 )

Streamline Health Solutions, Inc. had a gross margin of 53.45% for the quarter that ended in Oct. 2013 => Durable competitive advantage

The 3-Year average Growth Rate of Gross Margin for Streamline Health Solutions, Inc. was -0.30% per year.


Definition

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

Streamline Health Solutions, Inc.'s Gross Margin for the fiscal year that ended in Jan. 2013 is calculated as

Gross Margin (A: Jan. 2013 )=Gross Profit (A: Jan. 2013 ) / Revenue (A: Jan. 2013 )
=12.2 / 23.767
=(Revenue - Cost of Goods Sold) / Revenue
=(23.767 - 11.593) / 23.767
=51.22 %

Streamline Health Solutions, Inc.'s Gross Margin for the quarter that ended in Oct. 2013 is calculated as

Gross Margin (Q: Oct. 2013 )=Gross Profit (Q: Oct. 2013 ) / Revenue (Q: Oct. 2013 )
=3.6 / 6.732
=(Revenue - Cost of Goods Sold) / Revenue
=(6.732 - 3.134) / 6.732
=53.45 %

* All numbers are in millions except for per share data and ratio. All numbers are in their own 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.


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

Streamline Health Solutions, Inc. had a gross margin of 53.45% for the quarter that ended in Oct. 2013 => 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.


Related Terms

Operating Margin, Cost of Goods Sold, Gross Profit, Revenue


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Streamline Health Solutions, Inc. Annual Data

Jan04Jan05Jan06Jan07Jan08Jan09Jan10Jan11Jan12Jan13
Gross Margin 59.0952.5460.0954.8351.1845.5746.9035.8748.1051.22

Streamline Health Solutions, Inc. Quarterly Data

Jul11Oct11Jan12Apr12Jul12Oct12Jan13Apr13Jul13Oct13
Gross Margin 46.9150.1450.8251.4053.3053.4447.3950.9363.1053.43
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK
Hide